Industry Minister Ahn Duk-Geun announced that the country aims to make the data center cooling equipment sector a key driver of its export strategy, driven by the increasing demand for infrastructure needed to support the AI boom. The country is focusing on the export of data center cooling equipment.
Minister Ahn commented during his visit to LG Electronics‘ chiller production line in Pyeongtaek, about 60 kilometers south of Seoul. He emphasized the rapid growth of AI technologies, such as ChatGPT, fueling the need for enhanced cooling solutions in data centers worldwide.
Chillers, which circulate water through pipes to regulate temperatures, are crucial for preventing overheating in data centers. As generative AI platforms like ChatGPT grow in popularity, the energy consumption of these data centers has surged. According to LG Electronics, which manufactures chillers, the increasing demand for AI technologies has made cooling systems a vital component of data center infrastructure.
Recognizing the importance of this infrastructure, the South Korean government is making efforts to lead the global market for data center cooling equipment. Industry Minister Ahn Duk-Geun stated that while South Korea has seen consistent growth in outbound shipments for 14 consecutive months, it must focus on developing new export engines to maintain this momentum. The government sees AI-related products, including cooling systems, as key to sustaining this growth.
The Ministry of Trade, Industry, and Energy has already started supporting the export of AI chips, electronic equipment, and cooling systems, which are considered next-generation export engines. During his visit to LG Electronics’ chiller production line, Minister Ahn highlighted that data centers are essential infrastructure for the AI sector, and the country’s focus on cooling systems aligns with this need.
To further promote the export of cooling equipment, the South Korean government plans to invest 350 billion won in trade insurance to support companies in the sector. The ministry will also assist companies in identifying potential buyers and provide additional support to enhance the global competitiveness of South Korea’s cooling technologies.
South Korea’s cooling equipment exports are projected to reach $2.6 billion in 2024, up from $2.4 billion in 2023. Between January and October of this year, the exports already totaled $2.2 billion, a strong demand for this technology in the global market.
