LG to build data center cooling, considers AC subscription service for 'continuous revenue'

LG Electronics is expanding into the data center cooling business, as it wants to expand its production to cash in on the non-stop AI boom.

LG to build data center cooling, considers AC subscription service for 'continuous revenue'
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Gaming Editor
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LG Electronics wants to make Life Good in the data center market, with the South Korean giant expanding its production to cash in on the AI boom.

LG to build data center cooling, considers AC subscription service for 'continuous revenue' 703

How? LG recently said at its Investors Forum write-up that "in the HVAC sector, LG leads the high-efficiency market with its advanced inverter and heat pump technologies, and it is actively targeting the cooling systems market for AI data centers, where demand is surging".

LG expanded on this, saying that the LGE chiller business is on track to become a unicorn (a privately owned startup company that has a valuation of over $1 billion, and isn't listed on the stock market) in 3 years, and now sees new opportunities -- big money -- in the data center business, cooling data centers.

Back in May 2024, LGE announced it would be supplying large-scale cooling using chillers to a "major data center under construction in the US" but kept its client anonymous. The deal in question is said to be worth tens of millions of dollars, with LGE providing over 100 chillers.

LG explained: "Over the past three years, LG's chiller business has achieved an average annual growth rate of over 15 percent, with overseas sales more than doubling during the same period. LG plans to leverage its extensive experience in supplying chillers to power plants, data centers, and other facilities, along with its high-efficiency core technologies, to actively target the data center cooling market".

The company added: "In addition, LG is preparing to commercialize new solutions, such as liquid immersion cooling, which are gaining traction in the market".

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Anthony joined the TweakTown team in 2010 and has since reviewed 100s of graphics cards. Anthony is a long time PC enthusiast with a passion of hate for games built around consoles. FPS gaming since the pre-Quake days, where you were insulted if you used a mouse to aim, he has been addicted to gaming and hardware ever since. Working in IT retail for 10 years gave him great experience with custom-built PCs. His addiction to GPU tech is unwavering and has recently taken a keen interest in artificial intelligence (AI) hardware.

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