Flex Intends to Spin Off Its Cloud and Power Infrastructure Segment 

Flex announced that its Board of Directors has unanimously approved moving forward with a plan to spin off its Power and Cloud portfolio from Flex. 

The spin off fill be entitled SpinCo, which will serve as a global leader in critical digital infrastructure, delivering end-to-end power and thermal management technologies for AI data centers and mission-critical applications

This will create two independent, publicly traded companies, each optimally positioned to serve their customers and create value for their shareholders.

Revathi Advaithi, Chief Executive Officer of Flex, said, “By creating two focused, independent companies, we are giving SpinCo the platform to build and scale the products and digital infrastructure that the world’s most demanding AI workloads depend on, and Flex the focus to deliver advanced manufacturing solutions at global scale for diversified industries. We believe each company will have the strategic clarity and dedicated leadership to drive exceptional outcomes for its respective customers and shareholders. I’m excited to be part of the journey for both companies.”

SpinCo enables the scalable and reliable deployment of high-density digital and electrical infrastructure for diverse end markets like AI data centers and utilities. 

By integrating power, cooling, and compute at the system level, SpinCo delivers coordinated, system-level solutions designed to replace fragmented, multi-vendor approaches. 

This enables customers to achieve faster time-to-capacity, improved infrastructure reliability, and scalable performance as power densities and thermal complexity continue to increase.

SpinCo is positioned to benefit from long-duration secular trends, including electrification, rising power intensity, and increasing infrastructure complexity. These dynamics are driving a sustained, multi-year buildout of digital infrastructure, particularly as artificial intelligence adoption accelerates. 

Following the spin-off, Flex will continue to operate as a leading global manufacturing partner, organized into two segments, Integrated Technology Solutions and Regulated Manufacturing Solutions. Flex will serve the healthcare, industrial, automotive, communications, and lifestyle end markets.