LG Expands Export Efforts for AI Data Center Cooling Solutions

On Monday, LG Electronics announced its collaboration with the Ministry of Trade, Industry and Energy to significantly boost exports of its cooling solutions specifically designed for data centers that support artificial intelligence (AI) applications.

The company’s large cooling systems, known as chillers, have seen a surge in demand due to the critical need for effective thermal management in large-scale data center operations.

During a visit to LG’s chiller manufacturing facility located in Pyeongtaek, Gyeonggi Province, Industry Minister Ahn Duk-geun expressed the ministry’s commitment to help enhance export capabilities. He stated, "We will fully support Korean companies to enter the global data center market and increase the competitiveness of Korea-made cooling systems." This visit underlines the government’s focus on making cooling systems for data centers a priority export item.

According to the market research firm Grand View Research, the global data center market is estimated to reach $437.3 billion by 2030, growing at an annual rate of 10.9%. The chilling solutions market is also expected to grow significantly, projected to reach around $17.2 billion by the same year.

The chiller manufacturing plant in Pyeongtaek produces various types of chillers, catering to not only data centers but also large shopping malls, office buildings, and power plants. Their product lineup includes turbo chillers, absorption chillers, and screw chillers.

All operations—from design, manufacturing, to testing and shipping—are conducted at the Pyeongtaek facility, which has an impressive annual production capacity of approximately 1,000 chillers, distributing products to both local and international markets.

LG started its journey in the chiller industry in 2011 after acquiring LS Mtron's division that specialized in heating, ventilation, and air conditioning. Currently, LG maintains the leading market share in South Korea and is ranked fifth globally in the turbo chiller segment, a key area of growth.

What sets LG apart among global chiller producers is its innovative use of oil-free magnetic bearing technology in its large air-cooled chillers. This advanced technology utilizes electromagnetic force to rotate the compressor motor without oil, thereby minimizing noise and energy consumption compared to traditional models, marking it as a next-generation solution.

Furthermore, LG offers software technologies, including building management systems and building energy management systems, which provide comprehensive control and management of heating, ventilation, and air conditioning (HVAC) systems in buildings. These developments not only enhance their cooling solutions but also strengthen LG's competitive edge in the market.

Lee Jae-sung, president of the eco solution business at LG Electronics, highlighted the importance of chillers in their HVAC segment, stating, "Chillers are a critical pillar of LG's HVAC business, which drives the company’s B2B growth. We will enhance our collaboration and communication with the government to strengthen our competitiveness in the AI-driven market."

LG, Cooling, Export, DataCenter, AI