Flex CEO outlines separation of data center infrastructure unit, citing $17 billion market cap precedent from Nextracker spin-off.
Flex announced plans to spin off its data center power and cooling infrastructure segment, positioning the new entity as an industrial-focused company. CEO Revathi Advaithi highlighted the unit’s growth potential in thermal architecture and electrical infrastructure, driven by rising AI demand.
The move follows Flex’s 2023 spin-off of Nextracker, which now holds a $17 billion market capitalization. Advaithi noted the company’s strategic shift away from consumer markets toward high-growth compute and infrastructure sectors.
Flex executives framed the remaining business as a diversified manufacturing and services platform, emphasizing improved productivity and financial returns from its portfolio strategy over the past seven years.