LG Electronics Coolant Distribution Unit (CDU) (Image courtesy of LG Electronics)
SEOUL, July 8 (Korea Bizwire) — As midday temperatures soared past 36°C on July 8, LG Science Park in Seoul remained a cool refuge—thanks to LG Electronics’ cutting-edge HVAC (Heating, Ventilation, and Air Conditioning) systems, now positioned at the core of the company’s high-growth strategy.
For the first time, LG opened its state-of-the-art HVAC facility at LG Science Park to domestic media, showcasing high-efficiency chillers—including turbo, screw, and absorption models—that form the backbone of its building-wide cooling solutions. Among them, the screw chiller, which uses cheaper nighttime electricity to freeze water for daytime cooling, exemplifies LG’s energy-smart design.
With climate change and the AI boom creating surging demand for cooling systems, LG is aggressively expanding its HVAC business. The company has set a bold goal: 20 trillion won ($15 billion) in HVAC revenue by 2030, aiming for “compressed growth” at twice the industry’s pace.
A key part of this push is data center cooling. LG plans to triple its orders for liquid cooling solutions in 2024 and grow sales of its large-capacity chillers to 1 trillion won within two years. The company is currently testing liquid cooling technologies at its Pyeongtaek plant and in collaboration with LG Uplus.
At the heart of its data center strategy is the CDU (Coolant Distribution Unit), which directly cools AI chips and servers. LG’s CDU, developed with proprietary “Core Tech,” features high reliability, energy efficiency, and a virtual sensor system that ensures continued operation even if physical sensors fail.
LG Electronics Heating, Ventilation, and Air Conditioning (HVAC) Solution
LG is working to integrate its CDU technology into the global AI ecosystem, including compatibility with NVIDIA’s next-gen Blackwell GPUs, which will adopt liquid cooling. Discussions are also underway with Microsoft and other global tech giants for broader technical collaboration.
Beyond data centers, LG is strengthening its B2B footprint in commercial buildings, with the global chiller market expected to reach $12 billion by 2027. To stay competitive, LG is reinforcing its R&D and supply chains in key markets, including a new HVAC development team in India and expanded operations in China.
“China is raising the bar in quality and cost-efficiency,” said Executive Vice President Lee Jae-sung, head of LG’s Energy Solutions business. “We’re working to help Korean suppliers exceed Chinese standards in performance and cost.”
To further broaden its HVAC portfolio, LG is pursuing strategic acquisitions. It recently acquired 100% of Norwegian premium hot water system maker OSO to combine its stainless steel electric water heater technology with LG’s heat pump expertise.
“If we integrate OSO’s tech with our heat pump systems, we can create a new category of heat pump water heaters,” Lee said.
As global demand for smart, sustainable cooling rises, LG aims to position itself as a top-tier player—balancing innovation, localized solutions, and strategic partnerships to dominate the future of climate control.
Kevin Lee (kevinlee@koreabizwire.com)
