CIOTech Outlook Team | Tuesday, 08 July 2025, 13:39 IST
LG Electronics is poised to enter the AI data center cooling market, leveraging its advanced liquid-cooling technology to address the intense heat generated by AI servers. The company aims to secure contracts with major tech firms like Nvidia, expanding its Heating, Ventilation, and Air Conditioning (HVAC) business, previously focused on commercial buildings, into the rapidly growing AI sector.
During a press briefing at LG Science Park in Magok, Gangseo District, western Seoul, LG provided a strategic direction of its Electronics Solutions business division that controls the HVAC unit.
“We will commercialize our liquid-cooling solution within this year to rapidly enter the AI data center cooling market, and begin full-scale supply from next year,” said Lee Jae-sung, head of the ES Business Division. “Our goal is to triple our cooling solution orders for data centers compared to last year and achieve growth twice as fast as the market.”
AI data centers, which rely on high-performance semiconductor chips that can exceed 90 degrees Celsius, require advanced cooling solutions. Although air cooling is not adequate, preferred cooling is liquid cooling by chilled water. LG rolled out its new so-called Core Tech technology, which will provide rock-solid functionality of its liquid-cooling system even in cases when important sensors are out of service. “We are currently undergoing certification procedures and discussions to enter Nvidia’s server supply ecosystem,” Lee added.
LG also plans to expand its chiller business, which cools water for circulation through buildings via heat exchangers, into data centers. The company targets 1 trillion won ($730.8 million) in chiller revenue within two years, citing a projected $12 billion global market by 2027.
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To support global growth, LG will establish an HVAC product development unit in India later this year, complementing its existing base in Changwon, South Gyeongsang. The company is also pursuing localized strategies and value chains in the Global South and considering acquisitions to strengthen its HVAC portfolio.
This Business-to-Business (B2B) transition, which involves HVAC, is an effort to branch out the portfolio of LG because of the fading profitability of its home appliances, such as TVs and refrigerators, as a result of market infiltration with Chinese-made products.
