LG Electronics said Monday it is teaming up with the Ministry of Trade, Industry and Energy to expand exports of its cooling solutions for data centers powering AI.
The large-scale cooling systems, called chillers, are in high demand as thermal management becomes crucial for operating massive data centers.
According to LG, Industry Minister Ahn Duk-geun visited LG’s chiller plant in Pyeongtaek, Gyeonggi Province, earlier in the day and pledged the ministry’s full support to boost the exports.
“We will fully support Korean companies to enter the global data center market and enhance the competitiveness of Korea-made cooling systems,” the minister was quoted as saying during the visit.
Earlier this year, the ministry designated cooling systems for data centers as a key export item to support.
According to market research firm Grand View Research, the global data center market is expected to hit $437.3 billion by 2030 with an annual growth rate of 10.9 percent. The cooling market, in particular, is projected to reach $17.2 billion by 2030.
The Pyeongtaek plant produces a range of chiller products for data centers, large shopping complexes, office facilities and power plants. Key products include turbo chillers, absorption chillers and screw chillers.
The factory handles all processes from design and manufacturing to testing and shipment, supplying products to major domestic and international markets. Its annual production capacity is about 1,000 chillers.
LG entered the chiller business in 2011 by acquiring LS Mtron's heating, ventilation and air conditioning division. It holds the top market share in Korea and ranks fifth globally in the turbo chiller segment, a key product category.
Among global chiller manufacturers, LG is unique in applying oil-free magnetic bearing technology to large-capacity air-cooled chillers. This advanced technology uses electromagnetic force to suspend and rotate the compressor motor’s shaft, reducing noise and energy loss compared to traditional oil-bearing methods, and earning recognition as a next-generation innovation.
Additionally, LG has developed software solutions, including building management systems and building energy management systems, which enable integrated control and management of HVAC equipment installed in buildings, further enhancing its competitiveness.
"Chillers are a critical pillar of LG's HVAC business, which drives the company’s business-to-business growth," said Lee Jae-sung, president of eco solution business at LG Electronics. “We will strengthen collaboration and communication with the government to enhance our competitiveness in the AI era.”
