Power conversion equipment firm EPC Power Corp. is being acquired by manufacturing industry collaborator Flex in a $4.4 billion transaction.

EPC designs and builds software-enabled power conversation equipment for data centers, utility-scale energy storage and microgrids. The two companies hope to close the transaction by later this year.

The rising tide of data center and AI factory energy demand is pushing numerous energy services companies into on-site, microgrid and behind-the-meter power generation projects. Meanwhile, AI supercomputing growth is pushing rack density closer to 1 MW and creating 1-GW data centers in the near future.

EPC Power, for instance, supplies an 800-volt data center power architecture that includes digital rectifiers and solid-state transformers. EPC also offers its Agile Grid Forming technology to aid in hyperscale-level energy demand.

The merged entity of Flex and EPC Power will elevate its market share in integrated grid-to-chip business sectors, the companies say.

"What we accomplished over the last four years demonstrates the power of strong partnerships and a shared commitment to innovation,” EPC Power CEO Jim Fusaro said in a statement. “Together with (private equity investors) Goldman Sachs Alternatives and Cleanhill Partners, EPC Power emerged as a U.S. technology leader in power conversion solutions that enable the next generation of data centers, AI computing, and grid modernization. We expanded our domestic manufacturing footprint nearly tenfold, strengthening America's industrial base and reinforcing the critical role of U.S. innovation in powering the future economy. This is only the beginning of what EPC Power can accomplish.”

Upon closing of the transaction, EPC Power will merge within Flex’s Cloud and Power Infrastructure business segment.

In May, Flex announced it was spinning off its Cloud and Power Infrastructure portfolio into a separate, independent and publicly traded new company. The new company will focus on deployment of high-density digital and electrical infrastructure for end marks such as AI data centers and utilities.

"A generational shift in power architecture is underway, driven by rising power density and the changing demands of digital infrastructure," said Revathi Advaithi, CEO of Flex. "EPC Power brings leading power conversion and grid-forming technology that positions us to capitalize on this shift, delivering 800V power conversion today and building towards solid-state transformers. Together with our existing power, cooling and compute capabilities, this transaction expands our ability to design and deliver digital infrastructure as an integrated system."

EPC Power is expected to generate approximately $800 million of revenue this year, while Flex expects it could rise about 40% in 2027, according to the release. Advaithi will join the Flex spinoff as CEO and lead the Flex board as non-executive chairman.

In July, Flex announced a partnership with AI computer architecture firm Cerebras Systems to scale manufacturing of the latter’s CS-3 AI accelerator systems. Those two companies believe the expanded production will increase CS-3 capacity seven-fold before the end of this year.

At that same time EPC Power was announced its new inverter manufacturing plant in South Carolina. The 167,000-square-foot facility is build out EPC's M and Mrack series power inverters and possibly triple production levels of those products.