LG Electronics has announced a significant strategic push to become a global leader in HVAC systems, with a special focus on AI-driven data center infrastructure. Unveiled at a press event at LG Sciencepark in South Korea on July 8, the company outlined a growth roadmap aimed at expanding its Energy Solutions (ES) division, targeting KRW 20 trillion (approximately USD 14.5 billion) in HVAC revenue by 2030.

This long-term strategy is set to be driven by increasing demand for AI data centers and the need for energy-efficient and high-performance cooling systems in industrial and commercial environments.

With the proliferation of generative AI and large-scale data processing, modern data centers are facing unprecedented thermal management challenges. LG is positioning itself at the heart of this transformation. The company’s roadmap includes a growing portfolio of specialized cooling technologies for AI and hyperscale data centers. These solutions span from traditional chiller-based air cooling to advanced direct-to-chip liquid cooling systems and HVAC units that can operate under direct current conditions – allowing integration into newer, more energy-conscious data center designs.

LG has already established a dedicated AI Data Center HVAC Solution Lab at its Pyeongtaek manufacturing site to simulate complex thermal scenarios and test cooling performance under a variety of AI server loads. The facility enables the company to optimize thermal efficiency through real-time modeling and environmental control. In partnership with LG U+, a major South Korean telco, the company is now conducting pilot trials of its liquid cooling systems to demonstrate readiness for commercial rollout. According to internal projections, LG expects its data center cooling solution orders to more than triple in 2025.

This strategic pivot is taking place against the backdrop of a global chiller market expected to reach USD 12 billion by 2027. LG aims to claim a significant share of this market by achieving KRW 1 trillion (USD 720 million) in data center chiller revenue within the next two years. These goals are part of a broader expansion into the industrial B2B segment, where the company is already making headway with large-scale installations. Notable projects include delivering 28,000 RT (refrigeration tons) of chiller capacity to The Avenues-Riyadh development in Saudi Arabia and outfitting a major logistics center in Tuas, Singapore with its flagship Multi V i system.

Beyond hardware, LG is expanding its software and services portfolio to grow non-hardware revenues. A key component is BECON, an AI-enabled integrated building management platform offering real-time energy analytics. The company is also advancing digital twin technology for data centers, enabling predictive maintenance and AI-optimized HVAC control based on anticipated server heat loads.

M&A Goals, Academy Training Centers

To facilitate this growth and solidify its technical capabilities, LG is also pursuing targeted M&A activity. Its recent full acquisition of Norwegian water heater manufacturer OSO is part of this broader strategy. The company’s “3B strategy” (Build, Borrow, Buy) further includes building internal expertise through initiatives like its HVAC Academy and partnering with academic and industry players to strengthen R&D capabilities.

In emerging markets, LG is investing heavily in localization. In India, a new production line at the company’s Sri City facility is set to begin operations by 2026, expected to produce up to 1.5 million air conditioning units annually. LG is also expanding its HVAC Academy training centers to 70 global locations across 43 countries by the end of 2025, aiming to cultivate local engineering and service talent capable of supporting region-specific deployments.

With AI data centers emerging as a critical growth vector across the tech infrastructure sector, LG is aligning its decades of HVAC experience with the future needs of enterprise-scale AI. The company’s comprehensive strategy – combining hardware innovation, software intelligence, localized operations, and aggressive market expansion – reflects its ambition to move beyond traditional consumer electronics and stake a leading claim in the global data center cooling market.

“As more data centers are constructed globally, the demand for HVAC systems is also increasing,” said James Lee, president of the LG ES Company. “Leveraging decades of experience and core technological excellence, LG is committed to becoming a leading HVAC solution provider in the AI era.”