EU and US could reach trade deal this weekend - Reuters
AUSTIN, Texas - Flex (NASDAQ: FLEX), a global manufacturing partner with a market capitalization of $13.49 billion and currently trading near its InvestingPro Fair Value, has significantly expanded its U.S. production capacity for critical power products to meet the growing demands of data center operators. The company’s recent enhancement of its manufacturing facilities in Columbia, South Carolina, and Dallas, Texas, aims to address the power infrastructure needs arising from the rapid adoption of AI technology.
The Columbia facility, now with a dedicated capacity of 134,000 square feet, along with the new 400,000-square-foot Dallas site, focuses on producing Databar, Power Distribution Units (PDUs), and Remote Power Panels (RPPs). This expansion is part of Flex’s strategy to deliver scalable power solutions more efficiently to its U.S. customer base.
Chris Butler, President of the Embedded and Critical Power Businesses at Flex, stated, "Expanding dedicated production capacity in this strategic location demonstrates our commitment to tackling the power challenges inherent in compute-intense environments and enables us to better serve customers as they build out data centers across the U.S."
Flex has grown its global manufacturing footprint by over eight million square feet since the fiscal year 2024, including four new strategic locations primarily in the United States. This growth is a blend of targeted acquisitions and organic capacity expansion initiatives. As of March 31, 2025, Flex’s U.S. operations span over 13 million square feet across 17 facilities, complementing its approximately nine million square feet in Mexico. This makes Flex one of the largest advanced manufacturing entities in North America, supporting regionalized manufacturing strategies.
Flex, which operates in 30 countries, provides technology innovation, supply chain, and manufacturing solutions to various industries and markets. The company’s increased investment in U.S. facilities underscores its role in supporting the evolving needs of data center operators in the AI era.
This expansion highlights Flex’s response to the increasing needs for reliable and efficient power infrastructure in the data center sector. The company’s strong financial position, with $25.58 billion in revenue and a P/E ratio of 14.04, supports its aggressive expansion strategy. The information reported is based on a press release statement from Flex.According to InvestingPro, Flex demonstrates good financial health with strong cash flow yields and has shown impressive momentum with a 15.36% return over the past week. For deeper insights into Flex’s financial metrics and growth potential, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers, along with 12 additional ProTips and extensive financial analysis.
In other recent news, Flextronics has caught the attention of investment firms with significant developments. Fox Advisors reaffirmed its Overweight rating on Flextronics, suggesting a positive outlook for the stock despite a 26% decline since February 2025. The firm sees this as a potential buying opportunity for long-term investors, indicating confidence in the company’s future performance. In a similar vein, Stifel has initiated coverage with a Buy rating and set a price target of $52.00, citing Flextronics’ expansion into growth areas like power and cooling as a key factor.
The company has also expanded its U.S. operations with a new 400,000-square-foot facility in Dallas, enhancing its power product manufacturing capabilities. This strategic move aims to meet the growing demand for power infrastructure solutions driven by the rise of artificial intelligence. The Dallas facility is expected to streamline production and reduce lead times for U.S. customers.
In addition, Flextronics’ recent acquisitions, including JetCool and Crown Technical Systems, are seen as strategic diversifications into attractive growth sectors. These developments underscore Flextronics’ commitment to scaling production and delivering innovative solutions across various industries.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.