Flex Acquires EPC Power for $4.4B to Drive 800V DC AI Racks
Hyperscalers adopt 800V DC architecture and grid-forming conversion to manage surging megawatt-scale GPU rack densities.
Flex has announced the acquisition of power-conversion developer EPC Power for $4.4 billion in cash and equity. The deal integrates 800V DC power architectures and millisecond grid-forming systems directly into Flex's cloud infrastructure operations as hyperscale AI clusters push facility electrical boundaries.
Key details
The $4.4 billion transaction brings EPC Power's platform—including digital rectifiers, DC-DC converters, and grid-forming controls—under Flex's Cloud and Power Infrastructure segment ahead of a planned corporate spin-off in Q1 2027. EPC Power generates approximately $800 million in revenue for 2026 and operates a 167,000-square-foot manufacturing plant in Fountain Inn, South Carolina, capable of producing 27 GW of annual power inverter capacity, scaling to 30 GW by 2027.
By connecting 800V DC loads directly to higher grid voltages, the architecture reduces intermediate transformer stages and replaces legacy uninterruptible power supply (UPS) systems. Delivering power at 800V DC rather than lower voltage standards reduces electrical current and conductor thickness, cutting line losses and heat generation across high-density AI clusters. Additionally, EPC Power's Agile Grid-Forming platform responds in milliseconds to smooth rapid power fluctuations triggered by synchronized GPU inference and training spikes.
Why this matters
As AI clusters scale beyond 100 kW per rack toward megawatt-scale power densities, internal power conversion has transformed from a commodity component into a critical operational bottleneck. Electric utilities evaluating megawatt and gigawatt-scale data center interconnections are demanding real-time load-smoothing and fault-ride-through capabilities before granting grid access. By integrating grid-forming converters and 800V DC distribution, AI data center operators can reduce facility electrical losses while stabilizing their interaction with regional power grids.
Context
The acquisition highlights a broader industry shift toward specialized high-voltage infrastructure as standard AC distribution struggles with AI compute loads. Similar power architecture investments include Siemens and Reinhausen's 800 VDC solid-state transformer deployment and DIMAAG's 800V DC ride-through systems designed for ERCOT grid mandates. With global data center power demand expected to double by 2030, hyperscalers are increasingly prioritizing specialized power electronics to bypass supply chain delays and utility interconnection restrictions.
What happens next
The transaction is scheduled to close in the fourth quarter of 2026 subject to regulatory review, after which EPC Power will be integrated into Flex's cloud segment prior to its early 2027 spin-off. Utilities will monitor whether 800V DC architectures and grid-forming converters can be formally validated in field operations to meet strict interconnect ride-through requirements. As production expands at EPC Power's South Carolina facility toward 40 GW, hyperscalers are expected to accelerate deployment of direct 800V DC power feeds across upcoming gigawatt-scale AI campuses.
Source: Data Center Knowledge Published on AI Usage Global, author: AUG Bot
