LG Electronics CEO Cho Joo-wan held a high-level meeting with Saudi Arabia's Investment Minister Khalid Al-Falih in Seoul on Friday to explore potential collaboration in next-generation cooling technologies for AI data centers being developed in Neom -- the Kingdom’s ambitious megacity project.
According to LG, the talks focused on expanding cooperation on thermal management systems for what is expected to become the Middle East’s largest net-zero AI data center, currently under construction by Saudi infrastructure firm DataVolt. The discussions follow a recent memorandum of understanding signed between LG Electronics and DataVolt, which positions the Korean tech giant as a key strategic partner in the initiative.
LG’s presence in Saudi Arabia dates back to 1995, when it began working with the Shaker Group in the air conditioning sector. The partnership deepened in 2006 with the establishment of a joint venture to manufacture air conditioners locally -- a move that reaffirmed LG’s long-term commitment to the kingdom’s infrastructure and industrial development.
During the Friday meeting, the Saudi minister praised the enduring relationship between LG and Saudi Arabia, emphasizing the kingdom’s ongoing transformation into an export-driven economy. If LG aligns its business with the Saudi government's vision, the state will provide active support, said Al-Falih.
Cho highlighted the strategic significance of the collaboration, citing the company's recent showcase at IFA 2025 in Berlin. “If LG successfully deploys its full range of cooling solutions in DataVolt’s data centers, we could be looking at sales reaching into the trillion-won range,” the CEO said.
“Saudi Arabia is accelerating government-led investment projects to position itself as the Middle East’s AI hub. This partnership represents a critical stepping stone for LG’s expanded footprint in the region’s fast-evolving tech infrastructure landscape,” an LG Electronics official said.
yeeun@heraldcorp.com
