LG Electronics is ramping up efforts to grow its heating, ventilation, and air conditioning (HVAC) business, aiming to triple sales of its data center solutions this year and reach 1 trillion won in chiller sales within two years.
At the HVAC Media Day held on July 8 at LG Science Park in Seoul, the company shared its strategic direction and showcased key products, underlining the importance of its cooling solutions for data centers and large-scale facilities.
As part of its broader vision, LG Electronics announced plans to expand its HVAC business to 20 trillion won (approximately $14.6 billion) in annual revenue by 2030. The company is focusing on fast-growing industrial and commercial sectors, particularly AI-powered data centers, and intends to outpace market growth by offering region-specific, advanced cooling technologies. It will also follow a “3B strategy” — Build, Borrow, Buy — to accelerate development through partnerships and acquisitions.
With the rising global demand for data processing, power consumption and heat generation are increasing sharply, driving the need for more advanced thermal management solutions. LG has responded by accelerating the development of both air- and liquid-based cooling systems designed specifically for hyperscale AI data centers.
To better target this opportunity, LG recently spun off its HVAC business from the H&A (Home Appliance & Air Solution) Division, forming a dedicated Eco Solution (ES) Business Division. This structural change is designed to enhance agility in the order-driven B2B market and respond more effectively to the global trend of energy transition. By treating HVAC as a core technology, LG plans to deliver faster, more focused innovation in industrial cooling, targeting sectors such as AI, semiconductors, and smart infrastructure.
One of LG’s standout offerings is its newly developed Coolant Distribution Unit (CDU), a liquid cooling solution that directly lowers temperatures at the chip level. This system is gaining attention for its space efficiency and high performance compared to traditional air cooling. The company has begun pilot testing its CDU technology in collaboration with LG U+ and is currently undergoing certification to enter NVIDIA’s supply chain.
LG also revealed that it is in separate talks with major players, including Microsoft and global server manufacturers, to further expand its market footprint.
In addition to product development, LG is focusing on building a globally integrated HVAC value chain — from research and development (R&D) and production to sales and after-sales service — to meet local needs quickly and effectively.
To support long-term revenue growth, LG aims to increase its non-hardware income, including subscriptions and maintenance services, from the current 10% to 20%. It is also nearing the rollout of a digital twin system, capable of predicting server heat output in virtual environments and automatically adjusting HVAC settings to reduce energy use.
With the global chiller market forecast to hit $12 billion by 2027, LG expects to generate 1 trillion won in chiller-related sales within two years. The company’s chillers are already being used in AI data centers, battery manufacturing plants, and commercial buildings worldwide. Through continued R&D investment, strategic acquisitions like its recent purchase of Norway-based OSO, and close collaboration with major tech firms, LG aims to lead the market as the HVAC provider in the AI-driven digital economy.
Image credits: LG Electronics
