LG Electronics to Build Power Consumption-Reducing Data Center to Lower Energy Use and Heat Generation

Supplying Cooling Units to Reduce Energy Loss
Korea Electric Power Corporation and Hanwha Sign Business Agreement
Developing Cooling Solutions for AI Data Centers

LG Electronics, in collaboration with Korea Electric Power Corporation and Hanwha, will build a "power consumption-reducing data center" aimed at lowering both energy use and heat generation in data centers.

On April 24, LG Electronics signed a memorandum of understanding (MOU) with Korea Electric Power Corporation and Hanwha Construction Division at the Hanwha Building in Jung-gu, Seoul, for the "establishment of a direct current (DC)-based data center and ecosystem development." The signing ceremony was attended by Jaesung Lee, Vice President and Head of LG Electronics ES Business Division; Dongcheol Kim, President of Korea Electric Power Corporation; and Seungmo Kim, CEO of Hanwha Construction Division.

Through this technical agreement, the three companies will build a power consumption-reducing data center in which 1MW out of a total 10MW of server and cooling facility capacity will be supplied with direct current. This initiative aims to develop solutions that utilize renewable energy to reduce both power consumption and heat generation in data centers, as demand for artificial intelligence (AI) data centers continues to rise.

While conventional data centers primarily use alternating current (AC) power, renewable energy sources such as solar and wind generate direct current (DC) power, resulting in approximately 10% energy loss during the conversion process. To address this loss, LG Electronics plans to develop and supply a large-scale cooling unit, known as a "chiller," that operates on direct current.

LG Electronics will be responsible for developing DC-based cooling equipment and HVAC solutions. Korea Electric Power Corporation will ensure stable power supply and technology verification based on low-voltage direct current (LVDC) transmission technology. Hanwha Construction Division will be in charge of designing and constructing the DC-based data center.

(From left) Seungmo Kim, CEO of Hanwha Construction Division; Dongcheol Kim, President of Korea Electric Power Corporation; Jaesung Lee, Vice President and Head of LG Electronics ES Business Division, provided by LG Electronics

Leveraging its high-efficiency HVAC (heating, ventilation, and air conditioning) technology, LG Electronics is developing a range of cooling solutions for domestic and international data centers. In response to increasing demand for thermal management in data centers, the company plans to accelerate business-to-business (B2B) growth through various customized cooling solutions, including: liquid cooling solutions using CDU (coolant distribution units) to directly cool chips; air cooling solutions using chillers to lower room temperatures within data centers; and HVAC solutions compatible with direct current power.

Additionally, to simulate diverse environmental conditions for AI data centers, LG Electronics recently established a dedicated AI data center testbed at its chiller factory in Pyeongtaek.

LG Electronics' HVAC systems are based on "Core Tech." By utilizing self-developed inverter technology, compressors, and motors, the company delivers high-efficiency, highly reliable products that also contribute to energy savings. At the end of last year, LG Electronics established the ES (Eco Solution) Business Division to accelerate the growth of its HVAC business. The ES Business Division aims to achieve compressed growth at twice the market rate in the cleantech sector. In particular, it is actively responding to new growth opportunities such as cooling systems for AI data centers, nuclear power plants, and mega factories, where demand is increasing.

Jaesung Lee stated, "We will continue to lead the development of cooling solutions that reduce power consumption, leveraging the differentiated technological expertise we have accumulated by supplying cooling solutions to various data centers both in Korea and abroad."