Flex on October 12, 2026, announced an expanded portfolio of prefabricated modular data center solutions designed to accelerate deployment of next-generation AI factories. The portfolio includes new Axiom AI Modules that integrate power, high-density compute and advanced liquid cooling into factory-built systems, which Flex said can cut deployment timelines by up to 50% versus traditional construction.
The expanded portfolio is part of Flex’s Cloud and Power Infrastructure segment, which the company plans to separate into Axiom Solutions International, Inc., an independent publicly traded company, in the first quarter of calendar 2027. Flex said that as AI infrastructure grows in scale and power density, data center operators face increasing complexity across power delivery, cooling, compute integration and deployment. Chris Butler, expected Chief Technology and Strategy Officer at Axiom, said meeting that demand at scale requires more than incremental improvements, describing instead a system-level approach that combines power, compute and cooling technologies with advanced manufacturing to simplify integration, accelerate deployment and deliver AI factories at scale.
Inside the Axiom AI Modules
According to the announcement, the modules integrate critical AI infrastructure across three component categories. An 800 VDC Power Rack delivers high-efficiency power conversion and distribution for next-generation 800 VDC AI infrastructure and high-density compute. Advanced cooling distribution units provide liquid cooling to manage the heat generated by power-intensive AI workloads, while high-density IT racks integrate AI servers, networking and high-speed interconnects to support next-generation AI compute at scale.
Flex said that shifting complex infrastructure integration from the data center site to a controlled factory environment allows the modules to be assembled, integrated and tested in parallel with site development, reducing on-site complexity and helping customers bring AI capacity online faster. A Flex resource page published October 12, 2026, states that the modules are prefabricated and commissioned in a controlled factory environment, with IT racks and essential supporting infrastructure integrated into a single system before shipment. The modules comprise aisle frames, coolant distribution units, secondary fluid networks, remote power panels, controls, electrical distribution systems, water quality management systems, and safety and leak detection components.
Modeled Deployment Timelines
The resource page presents a modeled comparison of prefabricated modular deployment against traditional stick-built construction for an AI factory project with an 18-month, or 78-week, traditional construction baseline. In that model, Flex said, Axiom AI Modules can reduce deployment timelines by up to 50%, from 78 weeks to as few as 39 weeks.
Flex attributed the acceleration to five factors: design standardization and factory integration; parallel factory manufacturing and on-site construction; reduced on-site installation, testing and commissioning; integrated controls and rack-level testing; and fewer late-stage changes, rework and field installation failures. The company stated that actual deployment timelines and savings vary based on project scope, site conditions, design requirements and other factors.
Manufacturing Footprint and the Axiom Separation
Flex said it is actively building prefabricated modular solutions for hyperscalers across its global footprint, supported by more than three million square feet of dedicated data center infrastructure manufacturing capacity in the United States.
In connection with the proposed separation, Flex filed a proxy statement on Schedule 14A with the U.S. Securities and Exchange Commission on October 5, 2026, and the proxy statement has been mailed or otherwise disseminated to shareholders to seek approval of the spin-off-related proposals. Axiom’s registration statement on Form 10 covering its common stock was filed with the SEC on September 15, 2026.
In a separate October 5, 2026, announcement, Flex said it had entered an agreement to sell $2.0 billion of Axiom Series A Convertible Preferred Stock to funds affiliated with General Catalyst, Koch Equity Development and co-investors, at an initial enterprise value for Axiom of $37.5 billion. Revathi Advaithi, Flex’s chief executive officer and the expected chief executive officer of Axiom, said the investment “provides equity funding for our recently announced acquisition of EPC Power and will allow Axiom to have a strong balance sheet as we prepare to stand up as an independent, publicly traded company.”
The convertible preferred stock pays a 10.0% per annum cash dividend before the separation, stepping down to 6.0% per annum in cash or 7.0% per annum if paid in kind afterward, subject to increases after the fifth anniversary of the separation and certain other adjustments. General Catalyst will have the right to nominate one director to Axiom’s board once the separation is completed.
Flex said net proceeds will fund a portion of the purchase price of Axiom’s pending acquisition of EPC Power, repay any equity bridge or other intermediate financing incurred in connection with the acquisition, pay dividends on the preferred stock, or serve general corporate purposes, and that it has separately secured committed term loan financing for the balance of the EPC Power acquisition. The investment is expected to close following customary regulatory approvals and other closing conditions, and the separation is expected to be completed in the first quarter of calendar 2027, subject to customary conditions.
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