LG targets global HVAC leadership with data center and regional B2B focus

LG Electronics has outlined its strategy to become a top-tier global provider of heating, ventilation and air conditioning (HVAC) solutions by 2030. At a press conference held on July 8 at LG Sciencepark in South Korea, the company presented a roadmap for expanding its ES Company’s capabilities, focusing on industrial and commercial B2B growth and tailored regional offerings.

LG aims to achieve KRW 20 trillion (approx. USD 14.4 billion) in HVAC revenue by 2030. A key driver is the growing demand for data center cooling amid the rise of artificial intelligence. The company plans to reach USD 720 million (KRW 1 trillion) in chiller sales within two years and expects orders for data center cooling solutions to more than triple in 2025. Its technologies include liquid cooling with coolant distribution units, chiller-based air systems, and solutions compatible with direct current environments.

To support these efforts, LG established the AI Data Center HVAC Solution Lab at its Pyeongtaek chiller plant, enabling performance testing under simulated AI server conditions. The company has also begun pilot testing liquid cooling technology with LG U+ in South Korea.

In line with its “Build, Borrow, Buy” strategy, LG is pursuing acquisitions to strengthen HVAC expertise. Its recent full acquisition of Norwegian water heating solutions provider OSO aims to expand its presence in the European heating market. LG is also enhancing internal R&D through its Air Solution Lab and HVAC Academy, while collaborating with academic institutions.

The company is expanding its B2B footprint in commercial infrastructure, with recent projects including Multi V i system installation in Singapore and the supply of 28,000 RT of chillers to a major Saudi Arabian complex. LG also targets non-hardware revenue growth, with platforms such as BECON and an AI-powered digital twin system under development.

To strengthen operations in emerging markets, LG is expanding localized manufacturing and sales. In India, a new product development team is being launched in 2025, with a production line at the Sri City plant to follow in 2026, capable of producing up to 1.5 million air conditioners annually.

“HVAC demand is rising in tandem with the growing number of data centers being built worldwide,” said James Lee, president of the LG ES Company. “Leveraging decades of experience and core technological excellence, LG is committed to becoming a leading HVAC solution provider in the AI era.”