Blog Summary:
1. LG Electronics aims to become a global leader in HVAC systems, focusing on AI-driven data center infrastructure.
2. The company is expanding its Energy Solutions division to target significant revenue growth by 2030.
3. LG is investing in specialized cooling technologies for AI data centers and pursuing M&A activities to strengthen its technical capabilities.
Revised Article:
LG Electronics has recently unveiled a strategic plan to position itself as a key player in the HVAC systems market, with a specific emphasis on AI-driven data center infrastructure. This initiative was announced at a press event held at LG Sciencepark in South Korea, where the company outlined its roadmap for growth within the Energy Solutions division, with a target of reaching KRW 20 trillion in HVAC revenue by 2030.
The long-term strategy is fueled by the increasing demand for AI data centers and the necessity for energy-efficient cooling systems in industrial and commercial settings. As modern data centers grapple with thermal management challenges due to generative AI and large-scale data processing, LG is gearing up to offer a range of cutting-edge cooling solutions. These include traditional chiller-based air cooling, advanced direct-to-chip liquid cooling systems, and HVAC units designed to operate under direct current conditions, catering to the evolving needs of energy-conscious data center designs.
To support its strategic pivot, LG has established an AI Data Center HVAC Solution Lab at its Pyeongtaek manufacturing site. This facility enables the company to simulate complex thermal scenarios and optimize cooling performance under varying AI server loads. Collaborating with LG U+, a major South Korean telco, LG is currently conducting pilot trials of its liquid cooling systems to showcase their readiness for commercial deployment. The company anticipates a significant increase in data center cooling solution orders by 2025.
In the context of a global chiller market expected to reach USD 12 billion by 2027, LG is aiming to secure a substantial market share by achieving KRW 1 trillion in data center chiller revenue within the next two years. This strategic move aligns with LG’s broader expansion into the industrial B2B segment, where it has already made notable installations like providing chiller capacity to The Avenues-Riyadh development in Saudi Arabia and outfitting a logistics center in Tuas, Singapore with its Multi V i system.
Beyond hardware innovation, LG is diversifying its offerings by expanding its software and services portfolio. One key component is BECON, an AI-enabled integrated building management platform offering real-time energy analytics. The company is also delving into digital twin technology for data centers, enabling predictive maintenance and AI-optimized HVAC control based on projected server heat loads.
To bolster its technical capabilities, LG is pursuing targeted M&A activity, exemplified by its recent acquisition of Norwegian water heater manufacturer OSO. The company’s “3B strategy” includes building internal expertise through initiatives like its HVAC Academy and forging partnerships with academic and industry stakeholders to enhance its R&D capabilities.
In emerging markets like India, LG is focusing on localization by investing in production facilities and expanding its HVAC Academy training centers globally. By nurturing local engineering and service talent, LG aims to support region-specific deployments and strengthen its presence in key markets.
In conclusion, LG’s comprehensive strategy combines hardware innovation, software intelligence, localized operations, and aggressive market expansion to establish itself as a leading player in the global data center cooling market. With a strong commitment to leveraging its decades of HVAC experience and technological excellence, LG is poised to meet the evolving needs of enterprise-scale AI and solidify its position as a top HVAC solution provider in the AI era. As James Lee, president of the LG ES Company, aptly puts it, “As more data centers are constructed globally, the demand for HVAC systems is also increasing. Leveraging decades of experience and core technological excellence, LG is committed to becoming a leading HVAC solution provider in the AI era.”
