2 Essential Data Center Solutions Providers Riding the AI Boom

Key Points

• The artificial intelligence (AI) boom is fueling the data center upgrade, expansion, and construction cycle.
• Flex’s manufacturing services and power product portfolio encompasses 80% of the data center.
• For the past five years, Engineering News-Record has ranked Jacobs Solutions as the #1 data center engineering firm.

The artificial intelligence (AI) revolution and cloud computing recovery are driving the worldwide growth of data centers. Existing data centers are furiously upgrading their systems to handle AI workloads, while new data centers are being built with AI deployment in mind. These AI data centers are coming online prepared for AI workloads that can require 2x to 4x more power than conventional computing tasks. Hyperscalers in the computer and technology sector like Microsoft Co. NASDAQ: MSFT, Amazon.com Inc. NASDAQ: AMZN, and Alphabet Inc. NASDAQ: GOOGL Google are exploring clean nuclear energy to power their data centers. Here are two essential data center solutions providers riding the AI boom.

Flex: Racking, Powering and Cooling Data Centers   

Electronic manufacturing services (EMS) giant Flex Inc. NASDAQ: FLEX provides comprehensive power and cooling solutions for data centers. It is the only provider delivering customized, fully integrated data center racks and power infrastructure solutions. Flex provides customized integrated server racks for servers, networking, and storage components. Its power portfolio is grid-to-chip, spanning from the facility power down to the power components on the server boards. Flex’s manufacturing services and power product portfolio cover more than 80% of the data center.

Flex Offers Grid-to-Chip Power Solutions

Flex formed a partnership with Musashi Energy Solutions to enhance their Flex capacitive energy storage (CES) solution, which is the leading solution for mitigating massive power spikes. This commonly disrupts data centers by adding new AI clusters. They also unveiled their next-generation computer reference design for AI and high-performance computer applications. Flex covers all critical power components, from switchgear and power distribution units to power modules, with high-density digital power solutions built specifically for AI data centers.

Data Centers Demand Advanced Cooling Solutions 

Flex offers liquid cooling solutions at the rack and board levels. Their liquid cool Flex racked solution keeps the server and components from overheating with its power shelf, power supply, and busbars designed for higher-demand workloads. It’s a vertically integrated solution for its cloud customers, which they can customize and manufacture to spec. Flex acquired Jet Cool to expand its cooling offerings, such as direct-to-chip liquid cooling, which can handle even the most advanced AI servers.

Data Center Power Business Surges 40% YoY

In its fiscal second quarter of 2025, Flex’s cloud and data center power business grew 40% YoY, even outperforming its 20% long-term compound annual growth rate (CAGR) estimates. The company reported fiscal Q2 2025 EPS of 64 cents, beating consensus estimates by 8 cents. Revenues fell 5.6% YoY to $6.54 billion, beating $6.51 billion consensus estimates. They raised their fiscal full year 2025 EPS guidance to $2.29 to $2.51, from $2.30 to $2.50, and revenue guidance from $24.90 billion to $25.50 billion. Flex was added to the S&P MidCap 400 index on Nov. 25, 2024.

Jacobs Solutions: Data Center Construction  and Engineering

The data center boom wouldn’t be possible without actually constructing the massive data centers. Jacobs Solutions Inc. NYSE: J provides design and engineering services for data centers. They oversee the architectural and structure design and construction of data centers. This also includes designing the critical infrastructure like the electrical systems, cooling systems and backup generators. They are also focused on sustainable design and energy efficiency, working to integrate green building practices to minimize the environmental impact of their data centers.

The Top Ranked Data Center Engineering Firm

For the past five years, Engineering News-Record has ranked Jacobs Solutions #1 in data centers, electronic assembly, manufacturing, and semiconductors and #1 in top data center engineering firms for 2023 by Building Design + Construction. Jacobs Solutions customers include Microsoft, Amazon AWS, OCP, and the U.S. Army Corps of Engineers. The company has built over 11 million square feet of data center space in excess of 2,000 MW in power demand worth over $17 billion in construction value.

More Than Data Centers in the Technology Sector

Jacobs Solutions’ integrated project delivery model encompasses all areas of the technology sector. Some of their notable projects include the Singapore 335,000 square-foot greenfield research center, semiconductor fabrication (fab) facilities for Intel Co. NASDAQ: INTC, and the 10-acre Saudia greenfield technology hub. They offer Cloud Condos, which combine hyperscale and colocation data center design to construct and bring online 40% faster. The company completed the spin-off of its Critical Mission Solutions and Cyber & Intelligence government services business into a publicly traded company called Amentum Holding Inc. NYSE: AMTM. Jacobs Solutions still retains the data center business and a 7.5% of Amentum.