LG Electronics Expands AI Push, Secures Data Center Cooling Deals

LG Electronics is making strides in the artificial intelligence (AI) market by securing contracts for AI-driven data center cooling solutions in North America. This development highlights the company's expertise in HVAC and motor technology, showcasing its transition from traditional appliances to advanced AI applications.

The company reported that cumulative orders for its AI data center cooling solutions have exceeded 3 trillion won as of the third quarter of this year, a significant increase from 600 billion won in the first half. This surge is attributed to long-term contracts, including a notable deal with AIR Control Concept, a North American infrastructure firm.

Under this contract, LG will supply high-efficiency chillers and cooling equipment for AI data centers with a total capacity of 5 gigawatts. This move not only strengthens LG's market position but also establishes a solid revenue stream for the coming years.

LG Electronics has been in the chiller business since acquiring LS Mtron's HVAC division in 2011, expanding its reach from residential air conditioning to large-scale industrial cooling solutions. The company's long-standing expertise in heat management technology has positioned it well to meet the growing demands of AI data centers, which require effective cooling solutions to maintain optimal semiconductor performance.

In addition to cooling solutions, LG is also venturing into robotics, leveraging its motor technology from washing machines to develop actuators for robots. This diversification aligns with the company's broader strategy to enhance its AI capabilities and expand its product offerings in the technology sector.