Flex and Musashi Energy Solutions Partner to Mitigate Utility Power Challenges in AI Data Centers

Rhea-AI Summary

Flex (NASDAQ: FLEX) and Musashi Energy Solutions have announced a collaboration to supply Capacitor-based Energy Storage Systems (CESS) featuring Musashi's Hybrid SuperCapacitor (HSC) technology. These systems are designed to address utility power challenges in AI data centers. Key features of the CESS include:

• Support for power supply systems during large power transients
• Efficient energy management for AI workloads
• Longer lifespan than current battery systems
• Wide operating temperature range

Flex plans to begin production of its CESS in the first half of 2025, with commercial availability expected shortly after.

Positive

• First-to-market with Musashi's HSC technology for AI data centers
• CESS solutions designed to balance peak power and protect the grid from power surges
• Longer lifespan than current battery energy storage systems
• Wide operating temperature range from -30 to 70 degrees Celsius
• UL 810A certification and completion of UL 9540A testing for thermal runaway

Negative

• Production of CESS not starting until first half of 2025
• Commercial availability expected one quarter after production start

Insights

Tech Expert

This partnership between Flex and Musashi Energy Solutions marks a significant advancement in AI data center power management. The Capacitor-based Energy Storage Systems (CESS) with Hybrid SuperCapacitor (HSC) technology addresses a critical challenge in the rapidly growing AI infrastructure market.

The CESS offers superior performance compared to traditional battery systems, with multi-million charge/discharge cycles and a wide operating temperature range. This translates to improved reliability and reduced downtime for data centers, important for maintaining high-performance AI workloads.

The total cost of ownership reduction and the ability to balance power supply during large transients could make this technology highly attractive to hyperscale operators. As AI workloads continue to grow exponentially, solutions like CESS will become increasingly vital for sustainable and efficient data center operations.

Financial Analyst

This partnership positions Flex (NASDAQ: FLEX) at the forefront of the AI infrastructure market, potentially leading to significant revenue growth. With production slated for early 2025, Flex could capture a substantial market share in this rapidly expanding sector.

The collaboration with Musashi, a subsidiary of Musashi Seimitsu Industry Co., (TSE: 7220), adds credibility and technological edge to Flex's offering. This could translate into increased investor confidence and potentially higher stock valuations for both companies.

However, investors should note that the full financial impact may not be immediate, as production is still 18-24% months away. The success will largely depend on the adoption rate by hyperscale operators and the competitive landscape in 2025 and beyond.

Flex first-to-market with new Capacitive Energy Storage System products featuring Musashi's Hybrid SuperCapacitors at the center

AUSTIN, Texas, and BATTLE CREEK, Mich., Aug. 8, 2024 /PRNewswire/ -- Flex (NASDAQ: FLEX) and Musashi Energy Solutions a group company of Musashi Seimitsu Industry Co., Ltd. (Tokyo Stock Exchange Prime Market: 7220), announced an extensive collaboration to supply Flex-designed and manufactured Capacitor-based Energy Storage Systems (CESS) featuring Musashi's Hybrid SuperCapacitor (HSC) technology. These systems are designed to integrate with server rack power systems to address significant challenges with utility power in artificial intelligence (AI) data centers. First to market with Musashi's HSC technology, Flex has collaborated with Musashi to develop strategic technology and product development roadmaps for current and future products that enable hyperscale operators to mitigate utility power fluctuations in data centers deploying AI workloads.

Flex's CESS solutions are designed to balance peak power and protect the grid from intense power surges and line disturbances during AI training and inference activities taking place in modern data center environments. Musashi's state-of-the-art HSCs are designed to provide high-reliability energy storage in many applications and are known for their power density, longevity, and reliability. The technology reduces equipment size, weight and total cost of ownership.

Key features of the CESS include:

• The ability to support and balance power supply systems during large power transients
• Efficient energy management and the reduction of large power transients or spikes produced by AI workloads by alternately supplying and absorbing energy in its internal Hybrid Supercapacitors, which are supplied by Musashi
• A significantly longer lifespan than current battery energy storage systems, with ability to provide multi-million charge/discharge cycles – essential for high performance capacity and dependability needed in the data center
• A wide operating temperature and inherent safety through Musashi's Hybrid SuperCapacitors, with cells able to operate in temperature ranges from minus 30 to over 70 degrees Celsius, plus UL 810A certification and completion of UL 9540A testing for thermal runaway at the cell level

"We are proud to lead the charge in powering the next generation of AI innovation alongside Flex to address the power challenges needed to unleash capacity for explosive data center growth," said Frank DeLattre, President of Musashi Energy Solutions in North America. "Our partnership with Flex for its new CESS product will bring reliable, efficient and scalable power solutions to the market. Musashi Energy Solutions continues to invest heavily in future Hybrid SuperCapacitor cell development to meet the future power density demands in AI computing as well as the manufacturing capacity required for customers to meet the forecasted cell volume."

"Our collaboration with Musashi is central to developing our innovative CESS solutions to sustainably support the complex power demands of AI data centers worldwide," said Mattias Jansson, Vice President of Power Solutions at Flex. "Together with Musashi, our technology and innovation portfolio plans enable Flex to provide hyperscale operators with advanced energy storage systems that enable them to address long-term energy transitions. Our CESS solutions are another proof point of how Flex is enabling customers to maximize AI server cluster computing performance and unlock data center capacity as AI applications drive unprecedented growth."

Flex is slated to begin production of its CESS in the first half of Calendar Year 2025, with commercial availability expected within one quarter of production start.

About Flex

Flex (Reg. No. 199002645H) is the manufacturing partner of choice that helps a diverse customer base design and build products that improve the world. Through the collective strength of a global workforce across 30 countries and responsible, sustainable operations, Flex delivers technology innovation, supply chain, and manufacturing solutions to diverse industries and end markets.

About Musashi Energy Solutions – North America

Musashi Energy Solutions (MES) designs and develops high-power, long-lasting, and safe Hybrid SuperCapacitors (HSCs). Based in Battle Creek, Michigan, with manufacturing and assembly in Yamanashi, Japan and Battle Creek, Michigan, Musashi's talented R&D and system engineers are breaking free from perceived barriers and limitations to create new value through unique engineering development activities in design, prototyping, and testing. ( https://musashienergysolutions.com/ )

About Musashi Energy Solutions – Japan

Musashi Energy Solutions Co. Ltd., a group company of Musashi Seimitsu Industry co., Ltd. (Tokyo Stock Exchange Prime Market: 7220), is a pioneer (founded August 1, 2007)in the mass production of HSCs, which are sustainable and expected to contribute to the optimization of energy efficiency in next-generation social infrastructure such as data centers, micro-grids, public transportation and large commercial electric vehicles. ( https://www.musashi-es.co.jp/ )

Flex Contacts

Investors & Analysts
David A. Rubin
Vice President, Investor Relations
(408) 577-4632
David.Rubin@flex.com

Media & Press
Michelle Kershner
Director, Corporate Integrated Marketing and Communications
(602) 421-6407
michelle.kershner@flex.com

Musashi Energy Solutions North America Contacts

Business Development
Frank DeLattre
President, Musashi Energy Solution - Americas
(858) 361-9558
Frank.DeLattre@musashina.com

Media & Press
Danny Agar
Director of Marketing, Musashi North America
(248) 971-5174
Danny.Agar@musashina.com 

 

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SOURCE Flex

FAQ

What is the purpose of Flex's new Capacitor-based Energy Storage System (CESS)?

Flex's CESS is designed to address utility power challenges in AI data centers by balancing peak power, protecting the grid from power surges, and managing energy efficiently during AI workloads.

When will Flex (NASDAQ: FLEX) begin production of its CESS?

Flex is scheduled to begin production of its Capacitor-based Energy Storage System (CESS) in the first half of Calendar Year 2025.

What are the key features of Flex's CESS featuring Musashi's Hybrid SuperCapacitors?

Key features include support for power supply systems during large transients, efficient energy management for AI workloads, longer lifespan than current battery systems, and a wide operating temperature range from -30 to 70 degrees Celsius.

How does Flex's CESS compare to current battery energy storage systems?

Flex's CESS offers a significantly longer lifespan than current battery energy storage systems, with the ability to provide multi-million charge/discharge cycles, which is essential for high performance and dependability in data centers.