Flex Ltd. FLEX is entering a phase of elevated investment, with fiscal 2027 capex expected to be between $1.4 billion and $1.6 billion, a sharp increase from $625 million in fiscal 2026.

The company is scaling investments to capture increasing demand for AI-driven data center infrastructure, particularly within its Cloud and Power Infrastructure (CPI) segment. Management noted that the spending was tied to multi-year customer programs, including agreements with hyperscalers and data center clients such as Google.

These projects span power infrastructure, thermal systems and complex hardware manufacturing, necessitating considerable upfront capital deployment. FLEX noted that capex will remain elevated in fiscal 2027 but will…