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Flex Expands Modular AI Data Centre Portfolio Ahead of Planned Axiom Spinoff in 2027

Flex (NASDAQ:FLEX) has introduced an expanded range of prefabricated modular data centre solutions designed to accelerate the deployment of artificial intelligence infrastructure, as the company prepares to separate its Cloud and Power Infrastructure business into an independent publicly traded entity.

Announced on 12 October 2026, the new AI Modules combine power conversion, advanced cooling systems and high-density computing infrastructure within factory-built units.

According to Flex, the modular approach could reduce AI data centre deployment timelines by up to 50% compared with traditional construction methods, allowing customers to bring additional computing capacity online more quickly.

The announcement comes as growing investment in AI infrastructure increases demand for faster construction methods and integrated systems capable of supporting high-performance computing environments.

New AI Modules Integrate Power, Cooling and Computing Infrastructure

Flex’s expanded modular portfolio is designed to address several of the technical and logistical challenges associated with building large-scale AI data centres.

The new AI Modules incorporate 800-volt direct current (800 VDC) power conversion, advanced liquid cooling distribution units and high-density IT racks into prefabricated systems.

By integrating these components during manufacturing, Flex aims to simplify the installation and commissioning process for data centre operators.

The company said the modules can be assembled and tested in factory environments while construction and preparation work continues at the deployment site.

This parallel development process is intended to reduce the time required between the start of a project and the availability of operational computing capacity.

Factory-based assembly also allows the electrical, cooling and computing components to be integrated before delivery, potentially reducing the complexity of installation work at customer facilities.

The approach targets hyperscale operators and other organisations seeking to expand AI processing capacity while managing increasingly demanding power and thermal requirements.

“Meeting the demands of AI infrastructure at scale requires more than incremental improvements. It requires rethinking how power, compute and cooling work together as a system,” said Chris Butler, who is expected to become Chief Technology and Strategy Officer at Axiom Solutions International.

The integrated design reflects the increasing importance of coordinating electrical distribution and cooling infrastructure as AI servers require greater computing density and power capacity.

Cloud and Power Infrastructure Business Set for Separation

The modular data centre portfolio forms part of Flex’s Cloud and Power Infrastructure segment, which the company intends to separate into a standalone business named Axiom Solutions International, Inc. (Axiom).

Flex is targeting completion of the spinoff during the first quarter of calendar 2027, subject to the required approvals and completion of the separation process.

The proposed transaction would establish Axiom as an independent publicly traded company focused on the infrastructure technologies currently included within the segment.

As part of the preparations, Flex filed a proxy statement with the US Securities and Exchange Commission (SEC) on 5 October 2026, seeking shareholder approval for the planned separation.

Axiom has also submitted a registration statement on Form 10 to the SEC, another step in the proposed establishment of the independent company.

The regulatory filings indicate that Flex is advancing the formal process required to complete the transaction, although the separation has not yet been finalised.

The planned spinoff would create a separately listed business with exposure to data centre infrastructure, power management and related technologies.

Flex Highlights US Manufacturing Capacity and Hyperscale Demand

Flex said it currently operates more than three million square feet of dedicated data centre infrastructure manufacturing capacity in the United States.

The company is also developing prefabricated modular solutions for hyperscale customers across its international manufacturing network.

This production footprint provides manufacturing capacity for the factory-built systems that form part of its expanded AI infrastructure offering.

The company is positioning modular construction as an alternative to conventional data centre development, where electrical equipment, cooling systems and computing infrastructure are often installed and integrated primarily at the project site.

By shifting more of the assembly and testing process into manufacturing facilities, Flex aims to shorten deployment schedules and reduce the amount of specialised work required during on-site installation.

The approach could be particularly relevant to hyperscale customers seeking to expand capacity across multiple locations while maintaining consistent infrastructure designs.

The new product announcement also highlights the activities expected to form part of Axiom’s operations following the proposed separation from Flex.

As investment in AI computing infrastructure continues, the company’s modular systems are intended to address demand for integrated power, cooling and computing solutions that can be deployed at scale.

However, Flex has not disclosed pricing, expected order volumes or specific customer commitments for the newly introduced AI Modules.

The company also has not provided a definitive completion date for the Axiom spinoff beyond its target of the first quarter of 2027.

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