LG Partners With Flex To Expand Global Gigawatt Data Center Business
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By News Reporter
Strengthening Customer Value Via International Research Collaboration and
Comprehensive Field Testing Across Diverse Climates Over Two Years
SEOUL, Nov. 28, 2025 — LG Electronics (LG) continues to accelerate the development of high-performance heat pump technologies through its Global Heat Pump Consortium, expanding research across diverse climate conditions – from cold-humid regions to extreme heat. With a sharpened focus on efficiency, dependability and field-validated performance, LG is paving the way for the new era of energy-conscious heat pump innovation.
As global demand for cleaner heating intensifies and regions such as Europe phase out fossil-fuel boilers to support decarbonization targets, heat pumps are emerging as a key technology in the transition to more sustainable climate control. However, conventional heat pump often see reduced performance in low temperatures or cold-humid conditions, limiting adoption in some markets. To overcome this challenge and accelerate global deployment, LG is ramping up collaborative research initiatives to develop solutions optimized for diverse climates.
In 2023, LG established the Consortium for Advanced Heat Pump Research (CAHR) in Alaska, joining forces with the University of Alaska Anchorage (UAA) and the University of Alaska Fairbanks (UAF) to undertake R&D for high-efficiency cold-climate heat pump solutions. Since then, LG has expanded this collaborative network – now comprising 12 universities across five countries – and broadened its research into climate-specific heating, ventilation and air conditioning (HVAC) technologies.
These efforts are already yielding measurable results. At AHR Expo 2025 in the United States, LG and research partners from UAA and UAF presented findings based on long-term operational data from joint laboratories in Anchorage and Fairbanks, demonstrating improved low-temperature heating performance and efficiency by reducing thermal resistance in outdoor heat exchangers. The research contributed to the development of LG’s residential cold-climate heat pump, winner of the 2025 AHR Innovation Award in the Sustainable Solutions category.
Further momentum is coming from the European Consortium for Advanced Heat Pump Research (ECAHR), founded in June 2024. The consortium recently completed real-world testing of LG’s R32-based Air-to-Air Heat Pump (AAHP) in Norway. Results showed that energy use and carbon emissions reductions of approximately 60 to 80 percent, compared with an electric heater.1 These significant findings were published in the August and October issues of REHVA Journal,2 a respected publication for HVAC professionals.
To verify product performance in real-life environments, LG is conducting extensive field testing across seven global locations worldwide – including the United States, China, Norway and Saudi Arabia – spanning LG’s air-to-water heat pumps (AWHP), Multi V systems and residential air conditioners.
These field studies generate insights that directly influence product design. For example, observations that frost commonly accumulates on the lower section of outdoor heat exchangers in extreme cold led LG to introduce a redesigned structure that reduces frost buildup and enhances operational stability in severe winter conditions.
Strengthened by its global research collaborations and robust field-testing infrastructure, LG is advancing the development of next-generation heat pump technologies that deliver high efficiency and reliable performance in diverse climates. Recently, LG announced a partnership with King Saud University and Pusan National University to establish a tropical-climate testing facility in Saudi Arabia – reinforcing the company’s commitment to regionally optimized HVAC innovation.
“Through strengthened global research collaboration and extensive field validation, LG is accelerating the advancement of heat pump technology,” said James Lee, president of the LG ES Company. “We remain committed to delivering reliable, high-efficiency and sustainable heat pump solutions that meet the needs of customers around the world.”
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1 Level of reduction may vary depending on outdoor temperature.
2 Evaluating the Economic and Environmental Benefits of Air-to-Air Heat Pump Systems in Nordic Climates, and Performance Analysis of Air-to-Water Heat Pump Systems Using R290 Refrigerant Adapted to Nordic Climates.
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By News Reporter
Partnership Strengthens LG’s Global Data Center Solution Portfolio, Leveraging Joint
Expertise to Meet Increasing AI Power and Sustainability Demands
SEOUL, Oct. 28, 2025 — LG Electronics (LG) today announced the signing of a memorandum of understanding (MOU) with SK Enmove (SKEN) and Green Revolution Cooling (GRC) to jointly develop and expand next-generation liquid immersion cooling solutions optimized for artificial intelligence data centers (AIDCs).
Under the agreement, the three companies will collaborate to explore new business opportunities, conduct joint marketing and deliver proof of concept (PoC) demonstrations for integrated solutions and business models in liquid immersion cooling for AIDCs.
SKEN, a leading company in advanced lubricating base oils and premium lubricants, provides next-generation thermal management solutions, including immersion cooling fluids, and is strengthening its global partnerships to foster an immersion cooling ecosystem. In 2022, SKEN became the first company in Korea to develop immersion cooling fluids. Through an equity investment in GRC, SKEN is also leading the way in innovation in the future cooling market, jointly developing data center immersion cooling systems with the company.
GRC, headquartered in Texas, is a global leader in immersion cooling solutions. Since launching its industry-first solution in 2009, GRC has been at the forefront of commercializing immersion cooling technology and expanding the market by partnering with leading global IT companies.
LG will take the lead in integrating data center cooling systems, providing core components such as coolant distribution units (CDUs), facility water units (FWUs) and chillers. SKEN will supply advanced thermal fluids designed for immersion cooling, while GRC will contribute its expertise in immersion tank system design and deployment.
The rapid expansion of the AI industry has created new challenges for data center operators worldwide, who must meet increasing computing demands while improving energy efficiency and complying with stricter sustainability standards.
Liquid immersion cooling, which submerges entire servers in a non-conductive fluid, offers a highly efficient alternative to traditional air- or water-based cooling methods. By transferring heat from the servers through a heat exchanger and circulating it via external cooling systems such as air-cooled chillers, the technology can significantly reduce overall energy consumption.
Compared with conventional cooling systems, liquid immersion cooling can improve power usage effectiveness (PUE) and enable the stable operation of high-density GPU servers. In addition, the technology enhances heat transfer efficiency and helps reduce potential fire risks, enabling safer and more reliable data center environments.
LG plans to expand its liquid cooling PoC at the Pyeongtaek testbed facility by adding an immersion cooling solution, further demonstrating the company’s system performance and integration capabilities. Building on the MOU with SKEN and GRC, LG will also develop an integrated Data Center Infrastructure Management (DCIM) platform, allowing operators to monitor and manage both facility and server systems in real time.
“We expect that these three companies, each with their own immersion cooling technology and market experience, will effectively combine their respective strengths to further enhance our competitiveness in the global data center immersion cooling market,” said Nam Jae-in, Head of Green Growth at SK Enmove. “Based on our innovative solutions and strategic partnership, we will lead the growth and transformation of the cooling market.”
“This collaborative partnership between LG and SK will provide innovative and quantifiable value to AI data center customers,” said Peter Pollin, CEO of GRC. “We will support customers in quickly adopting high-quality cooling solutions and establishing a stable operating environment.”
This partnership marks another milestone in LG’s broader strategy to deliver sustainable and intelligent data center solutions. Recently LG – together with LG Energy Solution and LG CNS – supplied its “One LG Solution” to hyperscale data centers in Indonesia and showcased its cutting-edge integrated AIDC cooling solutions at Data Center World Asia (DCWA) in Singapore.
“Through this strategic partnership with SKEN and GRC, LG aims to accelerate the adoption of liquid immersion cooling and deliver highly efficient and reliable solutions for the AI-driven future,” said James Lee, president of the LG ES Company. “We are committed to leading innovation in the data center market with integrated solutions that address both performance and environmental goals.”
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By News Reporter
New Partner-Operated Plant Highlights Company’s Strategic
Commitment to Emerging Markets
JAKARTA, Oct. 23, 2025 — LG Electronics (LG) has invested in a partner-operated production facility in Bekasi, West Java, Indonesia, dedicated exclusively to manufacturing LG air conditioners. As part of the company’s strategic efforts to reinforce its Global South strategy, the new facility will enhance LG’s presence in Indonesia, help strengthen its supply chain and serve as a hub for air conditioning innovation.
Coinciding with LG’s 35th anniversary in Indonesia, the Bekasi facility spans 32,000 square meters and commenced operation last month, starting with residential air conditioner production. In its first year, the factory is expected to produce approximately 700,000 indoor and outdoor units, with plans to double capacity in the near future.
All products manufactured at the facility will adhere to LG’s stringent global quality standards and embody the exceptional energy efficiency for which the company is renowned. Implementation of LG’s Korean Quality Control system – applied at all LG production sites globally – will support consistent performance and long-lasting reliability.
The facility also supports the Indonesian government’s initiative to harmonize Minimum Energy Performance Standards with those of the Association of Southeast Asian Nations (ASEAN). Furthermore, LG’s residential solutions employ R32 refrigerant,1 underscoring the company’s commitment to environmental responsibility.
Building on LG’s advanced technologies with localized production systems, the partner-operated plant is designed to deliver solutions optimized for the Indonesian market. In line with government policy on Domestic Component Level (TDKN2), LG aims to domestically source or manufacture more than 40 percent of key components used in production at Bekasi, contributing to local self-sufficiency and bolstering the supply chain. The plant will also create jobs, stimulate the regional economy and promote knowledge-sharing in air conditioning technology. These efforts will drive new growth opportunities for LG while advancing its goal of becoming a top-tier global HVAC provider.
LG has already played an important role in Indonesia’s industrial and social development through local manufacturing, sales and R&D. With facilities in Tangerang and Bekasi supplying both the domestic and regional markets, as well as a recently established R&D subsidiary, the company continues to create employment, facilitate knowledge transfer and support national industrial growth.
Now, through investment in the new partner-operated plant in Bekasi, LG will further expand production capacity and job creation, reinforcing its commitment to sustainable growth and community well-being. This move also reflects LG’s broader Global South strategy, which extends across R&D, manufacturing, sales and maintenance, while sustaining growth in North America and Europe. By establishing manufacturing plants in key markets such as Brazil, India and Thailand, LG is enhancing its flexibility to adapt to shifting global conditions.
“The new partner-operated facility in Indonesia underscores the tremendous progress we are making in advancing our Global South strategy,” said James Lee, president of the LG ES Company. “By strengthening local production capacity, we can better provide advanced air solutions that meet the needs of customers in Indonesia and surrounding markets, while driving growth across the region.”
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1 Global Warming Potential of R32 refrigerant is 675.
2 Tingkat Komponen Dalam Negeri.
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By News Reporter
“One LG” Strategy Delivers End-to-End Data Center Solutions Across
Cooling, Energy and Operations
SEOUL, Oct. 9, 2025 — LG Electronics (LG), together with LG CNS and LG Energy Solution, is presenting its comprehensive portfolio of advanced data center technologies at Data Center World Asia (DCWA) 2025 in Singapore (October 8-9). Unified under the “One LG Solution” strategy, the three LG Group affiliates are collaborating to offer a complete lineup of products and services for next-generation AI data centers – covering thermal management, data center design and energy solutions.
One LG: Integrated Solutions for the Future of AI Data Centers
Created to meet growing global demand for AI infrastructure, One LG Solution positions LG as the first-choice strategic partner for data center operators seeking efficiency, scalability and sustainability. The approach combines LG’s cutting-edge cooling technologies, LG CNS’s expertise in data center design, construction and operations and LG Energy Solution’s battery systems into a single cohesive offering for high-performance data processing facilities.
LG’s thermal management portfolio for large-scale, AI-focused data centers includes large-capacity chillers, direct-to-chip (DTC) cooling systems and computer room air handlers (CRAHs). Solutions such as the Coolant Distribution Unit (CDU) and Cold Plate are designed to provide precise temperature regulation for next-generation CPUs and GPUs, supporting stable and energy-efficient performance.
Enhanced by LG’s Data Center Cooling Management System and Digital Twin technologies, these solutions aim to support optimized operation and predictive maintenance. At DCWA, visitors can explore LG’s cooling innovations and experience augmented reality (AR) demonstrations showcasing the test-bed capabilities of LG’s facility in Pyeongtaek.
LG CNS, a leading AX (AI transformation) company in Korea, is spearheading the design, construction and management of next-generation AI data centers. Through its joint venture with Indonesia’s Sinar Mas Group, LG Sinarmas Technology Solutions, the company recently secured a major AI data center construction contract, which includes the deployment of LG’s inverter turbo chillers and other dedicated cooling systems. To accelerate its AI data center business, LG CNS is conducting proof-of-concept testing on immersion cooling, an advanced cooling technology, and has secured the “AI Box” (tentative name), a solution that consolidates all data center operational components into a container-sized unit.
Leveraging its patented battery technologies, LG Energy Solution provides uninterruptible power supply (UPS) systems designed to maintain continuous and reliable energy availability. These systems offer robust support for data centers in managing operational stability amid increasing AI workloads and fluctuating energy demand.
Bringing together the strengths and expertise of all three companies, One LG Solution’s integrated platform empowers global data centers to achieve operational resilience, energy efficiency and scalability.
LG’s Thermal and Energy Solutions for Next-Generation Data Centers
The One LG Solution showcase at DCWA 2025 underscores LG’s leadership in thermal management solutions engineered for data center environments. The LG CDU, equipped with a high-efficiency inverter pump, provides scalability and considerable installation flexibility through its compact, modular design. The Cold Plate liquid cooling system, featuring advanced DTC technology, is designed to directly manage the high thermal loads of advanced chips in data center servers.
Complementing these solutions, LG’s water-cooled chiller incorporates a magnetic bearing controller and oil-free centrifugal compressors, contributing to improved reliability and reduced energy consumption. The CRAH solution further enhances operational stability by reducing electricity usage and managing airflow effectively.
LG’s innovative direct current (DC) grid solution minimizes energy loss in data center operations. While traditional alternating current (AC) conversion can result in around 25 percent heat loss, LG’s DC grid reduces this to approximately 10 percent by enabling chillers to operate directly on DC power. Combined with high-efficiency inverter pumps and heat exchangers, the DC grid significantly improves power efficiency and contributes to lowering total operating costs.
“One LG Solution is ready to reshape the global data center landscape with future-ready solutions from LG Electronics, LG CNS and LG Energy Solution,” said James Lee, president of the LG ES Company. “With our leading thermal management systems, intelligent operation capabilities and resilient power solutions, we can supply data center operators with everything they need to scale efficiently in the AI era.”
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By News Reporter
Company Accelerates Growth Strategy, Expanding Footprint in the Global South
SEOUL, Sep. 8, 2025 — LG Electronics (LG) CEO William Cho is advancing the company’s Global South growth strategy through a strategic partnership to provide cooling solutions for an AI data center under development in Oxagon, the industrial hub of Saudi Arabia’s NEOM City project.
On September 2 in Riyadh, Cho met with Abdulelah Abunayyan, Chairman of SHAKER Group, the manufacturer and sole distributor of LG Air Conditioners, following the 30th anniversary of the strategic partnership; and Rajit Nanda, CEO of DATAVOLT, a global data infrastructure provider. The parties signed a memorandum of understanding (MOU) under which LG will supply advanced thermal management solutions for next-generation data centers being developed by DATAVOLT.
DATAVOLT, headquartered in Saudi Arabia with offices in the USA, Uzbekistan, India and the UAE and with a presence in South Korea and South Africa, develops hyperscale data centers that incorporate renewable energy and alternative fuels. Its flagship project in Oxagon is planned as one of the largest AI data centers in the region. DATAVOLT is also investing in hyperscale data centers in Uzbekistan, Bangladesh, and other parts of Asia.
“We are building a new generation of net-zero, AI-ready data centers designed for performance, scale and sustainability,” said Rajit Nanda, CEO of DATAVOLT. “Partnering with LG allows us to integrate world-class cooling technologies that are critical to enabling the digital transformation of governments and enterprises across the Kingdom of Saudi and beyond.”
“Our 30-year partnership with LG has been instrumental in shaping the HVAC market in Saudi Arabia, and today’s collaboration marks another step forward in that journey,” said Mohammed Ibrahim Abunayyan, CEO of SHAKER Group. “By joining forces with LG and DATAVOLT, we are driving innovation in advanced, energy efficient cooling solutions and supporting the Kingdom’s ambition to become a global technology hub.”
By integrating large-scale chillers with coolant distribution units, LG is positioning AI data center thermal management as a new growth engine within its heating, ventilation and air conditioning (HVAC) business. In addition to cooling, LG is developing capabilities to propose integrated solutions such as heat recovery and DC power systems, which can further contribute to energy efficiency in data centers.
The collaboration is also meaningful from the perspective of LG’s “One LG Solution” strategy, which seeks to leverage capabilities across LG Group affiliates. Beyond thermal management, opportunities may extend to battery solutions from LG Energy Solution and data center design, build and operation solutions from LG CNS, drawing on LG Group’s global network.
During his visit, Cho also assessed the market environment and business performance of LG operations in Saudi Arabia, Nigeria, the Levant and Maghreb, highlighting the importance of tailoring strategies to local market dynamics.
“The Middle East and Africa hold tremendous potential,” said CEO Cho. “The Middle East offers abundant B2G and B2B opportunities driven by government-led industrial restructuring and large-scale development projects. By leveraging our strong brand and differentiated offerings in areas such as AI home and smart solutions, we need to focus on capturing new growth across the region.”
Recently, Pilwon Jung, LG’s regional representative for the Middle East and Africa, signed an MOU with Mohammad Al Habib Real Estate Co., a major Saudi developer actively involved in government-backed projects, including premium housing developments.
This marks CEO Cho’s third visit to the Global South this year, following trips to India in January and to Vietnam and Indonesia in May. The Global South is a cornerstone of LG’s growth strategy, with the company positioning the region as a key engine for long-term expansion amid shifting global economic dynamics.
The Middle East and Africa together account for about a quarter of the world’s population and are recognized as regions of strong growth potential. In particular, the Middle East has accelerated diversification beyond oil under government-led initiatives. According to Korea Trade-Investment Promotion Agency’s 2025 Export Outlook and Regional Market Conditions report, non-oil GDP growth in the Gulf Cooperation Council, including the UAE and Saudi Arabia, is projected to reach 4 percent this year – the highest in three years.
LG has a long history in the Middle East and Africa, first entering the region through branches in Kuwait (1979) and Côte d’Ivoire (1990). Over the past five years, LG’s sales in the region have grown by more than 30 percent.
In HVAC, LG continues to introduce solutions designed for the region’s climate in collaboration with SHAKER Group. These include outdoor units with heat exchangers engineered to withstand sandstorms and high temperatures, produced at the local LG-SHAKER manufacturing facility. LG is also strengthening its service infrastructure with dedicated maintenance subsidiaries across the region.
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