How Jabil’s $725m acquisition of Hanley Energy Group could redefine critical power for AI-driven data centers

Jabil Inc. (NYSE: JBL) has signed a definitive agreement to acquire Hanley Energy Group in an all-cash transaction valued at approximately $725 million, with an additional contingent earnout of up to $58 million based on revenue performance milestones. The deal, expected to close in the first quarter of 2026 pending regulatory approvals, is positioned to dramatically expand Jabil’s footprint in critical power infrastructure—a market now accelerating at the intersection of AI, electrification, and digital infrastructure.

This move builds on Jabil’s momentum from its Intelligent Infrastructure division, which has become one of the company’s most profitable growth engines. By absorbing Hanley Energy’s end-to-end expertise in energy management systems and data-center power architectures, Jabil is signaling a strategic shift toward high-value industrial segments that combine manufacturing depth with sustainable, service-based solutions.

Why Jabil’s acquisition of Hanley Energy Group positions it to lead the AI and data-center energy transformation globally

Hanley Energy Group’s capabilities span a comprehensive range of intelligent power-chain services—from energy monitoring and low/medium-voltage switchgear to power distribution units (PDUs), uninterruptible power supplies (UPS), and grid interface design. These capabilities are central to the operational efficiency and resilience of hyperscale and AI data centers, which increasingly rely on advanced power management for uptime guarantees.

For Jabil, the acquisition does more than diversify its portfolio—it redefines its value proposition. Hanley’s strong engineering base in Ireland, the United States, and the Nordics brings deep regional expertise in high-availability data-center environments, renewable integration, and lifecycle energy optimization. By integrating this with Jabil’s global manufacturing network, the company can now deliver fully customized power-chain solutions at scale—a crucial differentiator in a data-center market forecast to exceed $1.2 trillion by 2030.

The timing is ideal. The global race to build AI-ready data centers has fueled demand for energy-efficient designs capable of handling exponentially higher workloads. Hanley Energy’s modular and scalable solutions fit this demand perfectly, providing the flexibility needed to optimize power use and maintain resilience in high-density computing environments. As AI workloads double energy consumption in the next decade, Jabil’s vertical integration could set a new benchmark for performance, sustainability, and cost efficiency in the sector.

How the deal strengthens Jabil’s Intelligent Infrastructure strategy and reshapes its manufacturing ecosystem

This acquisition reinforces Jabil’s Intelligent Infrastructure division as the centerpiece of its long-term growth roadmap. The company has been steadily evolving from contract manufacturing toward system-level design and service integration, and Hanley Energy now adds an essential capability—critical power management—at a time when the sector is evolving into the backbone of global AI and cloud infrastructure.

Executives from Jabil described Hanley Energy as a “perfect fit” for its Intelligent Infrastructure growth strategy. Matt Crowley, Executive Vice President, noted that Hanley’s expertise aligns with Jabil’s commitment to serve hyperscale and co-location providers with complete lifecycle solutions. By combining Jabil’s supply-chain reach with Hanley’s engineering and maintenance capabilities, the firm can offer end-to-end services—from concept and design to field deployment and monitoring.

Industry observers see this as part of a larger trend: traditional manufacturers are pivoting into service-rich infrastructure segments to capture recurring revenues. Hanley’s energy monitoring systems and service contracts are expected to provide Jabil with a stable cash flow, complementing its traditional manufacturing margins. Moreover, with Hanley’s data-driven monitoring systems, Jabil gains access to analytics capabilities that can enhance operational performance, predictive maintenance, and energy efficiency across client networks.

The synergy potential is significant. Integrating Hanley’s high-efficiency power systems into Jabil’s global production ecosystem could enable economies of scale, reduce supply constraints, and accelerate product deployment for hyperscale customers. This, in turn, supports Jabil’s long-term goal to be the preferred infrastructure partner for cloud providers, AI compute operators, and digital-native enterprises.

How investors are interpreting Jabil’s expansion into critical power infrastructure amid shifting capital-market sentiment

The stock market’s initial reaction was conservative. Jabil shares declined roughly 5 percent to trade around $210–$215 after the announcement, as investors assessed the near-term implications of the acquisition’s cash outlay and integration complexity. Analysts attributed the dip to short-term liquidity concerns rather than fundamental weakness.

Over the past year, Jabil has reported a consistent streak of “beat-and-raise” quarters, underscoring its operational discipline and strategic clarity. Its valuation remains attractive, with a forward price-to-earnings ratio below the technology manufacturing sector average. Research firm Simply Wall St values Jabil at approximately $259 per share, suggesting room for appreciation as its infrastructure initiatives mature. Meanwhile, Investor’s Business Daily’s composite ranking of 96 reflects strong technical and earnings performance relative to peers.

Institutional sentiment has tilted cautiously optimistic. Portfolio managers see the acquisition as a long-term positive, citing the structural growth of the data-center power market and Jabil’s proven execution record in scaling acquired businesses. However, analysts also emphasize key execution risks: aligning Hanley’s project-based revenue cycle with Jabil’s high-volume manufacturing rhythm, retaining specialized talent, and managing integration timelines without eroding margins.

If successfully executed, this acquisition could elevate Jabil’s recurring revenue base and drive sustainable earnings growth—an appealing narrative for institutional investors seeking exposure to AI infrastructure without the volatility typical of pure-play tech stocks.

How this acquisition could transform competition across the data-center energy and infrastructure ecosystem

The energy intensity of AI and hyperscale computing is forcing data-center operators to rethink power-system architecture, grid integration, and sustainability. In this environment, Jabil’s acquisition of Hanley Energy creates a unique hybrid model—one that combines manufacturing scalability with end-to-end service delivery and system integration.

This model could challenge incumbents like Schneider Electric, ABB, and Vertiv Holdings, which have long dominated the data-center power segment. Unlike traditional OEMs, Jabil’s global manufacturing base allows it to deliver custom-engineered power modules faster and more cost-effectively. Moreover, Hanley’s modular design approach complements Jabil’s supply-chain precision, reducing lead times for complex installations.

From a sustainability standpoint, the partnership also advances Jabil’s environmental, social, and governance (ESG) initiatives. Hanley’s systems are engineered for energy efficiency and carbon reduction—factors increasingly critical as data centers come under scrutiny for their environmental footprint. This strengthens Jabil’s ability to position itself as a partner for hyperscale and enterprise clients pursuing net-zero commitments.

Industry analysts have suggested that if Jabil executes effectively, it could emerge as a “fourth pillar” in the global power infrastructure market, joining ABB, Schneider, and Vertiv. The acquisition also opens the door for future innovation in battery integration, microgrid technology, and AI-driven energy optimization—areas where Jabil’s manufacturing and design expertise can provide an edge.

Why this acquisition marks a pivotal strategic shift for Jabil toward AI infrastructure leadership and long-term revenue diversification

The sentiment surrounding Jabil’s acquisition of Hanley Energy is cautiously bullish. Short-term volatility aside, the transaction positions Jabil at the nexus of AI growth and energy resilience—two of the decade’s most transformative industrial trends. Analysts anticipate that integrating Hanley’s power systems into Jabil’s global portfolio will generate meaningful margin expansion once integration is complete, likely within 24 months of closing.

From a strategic perspective, this acquisition transforms Jabil from a component producer into a systems innovator. The addition of Hanley Energy gives Jabil a powerful combination of physical manufacturing scale and digital service depth, allowing it to offer “power infrastructure as a service” for hyperscale clients. This integrated model could redefine how data centers are designed, powered, and maintained in an era where efficiency, reliability, and carbon accountability are intertwined.

Institutional sentiment indicates growing recognition that Jabil’s diversification is not a short-term experiment but a structural repositioning. If the company maintains its strong execution record and integrates Hanley effectively, it may establish a defensible market advantage in the multi-trillion-dollar digital infrastructure ecosystem. For investors, the acquisition represents a strategic bridge between industrial resilience and the exponential growth of AI compute demand—a combination few manufacturing firms can replicate.