First Public Unveiling of LG Science Park's HVAC System
Expanding Business with Solutions Targeting Data Centers
"Aiming for Triple the Orders for Cooling Solutions This Year Compared to Last Year"
LG Electronics is targeting the heating, ventilation, and air conditioning (HVAC) sector as a future growth engine in the era of artificial intelligence (AI). The company has set a goal to secure more than three times as many orders as the previous year with optimal solutions for data centers and other facilities, aiming to achieve "compressed growth" at a pace faster than the market.
On the 8th, at a press conference held at LG Science Park in Gangseo-gu, Seoul, Jaesung Lee, Vice President and Head of LG Electronics ES Business Division (left), is examining the cooling water distribution unit (CDU), a liquid cooling solution for AI data centers. LG Electronics
On the morning of July 8, at a Media Day event held at LG Science Park in Magok, Gangseo-gu, Seoul, LG Electronics introduced these goals. Jaesung Lee, Vice President and Head of the ES Business Division, stated, "HVAC is a core growth driver in the business-to-business (B2B) sector for qualitative growth," and added, "To quickly secure a leading position in the AI data center cooling solutions market, we aim to commercialize our liquid cooling solution within this year and begin full-scale supply starting next year."
Specifically, the company presented a target to increase orders for data center-related cooling solutions this year by more than three times compared to the previous year, achieving "compressed growth" at twice the market rate. In particular, LG Electronics set a goal to expand the reach of its ultra-large chiller units to data centers and achieve 1 trillion won in sales within two years. After establishing the ES Business Division as a separate entity at the end of last year, LG Electronics is targeting 20 trillion won in HVAC business sales by 2030.
On this day, LG Electronics unveiled the site where its HVAC solutions are applied at LG Science Park to the media for the first time. The cooling and heating of this comprehensive research complex, which brings together talent from across LG Group in electronics, chemicals, bio, and software, is managed by LG Electronics' self-developed chillers and building management systems (BMS), among others.
Upon entering the main mechanical room on the third basement level of Building W5, the chillers?referred to as the "lifeline" of the cooling system?came into view. Three types of chillers?turbo, screw, and absorption?each utilize their unique strengths to provide stable and efficient cooling throughout LG Science Park.
The ultra-large cooling unit "Oil-Free Inverter Turbo Chiller," gaining attention as an AI data center thermal management solution. LG Electronics
The cold water produced by the chillers is delivered through pipes to the air handling units (AHU). These units manage the building's air quality, performing functions such as temperature and humidity control and air circulation. Additionally, the air cooled by the chillers is distributed to various spaces within the building. At this stage, the terminal units (ATU) precisely control the amount and temperature of air according to the characteristics and environment of each space. The AHUs and ATUs installed at LG Science Park are products manufactured by Ace Refrigeration & Air Conditioning, a wholly owned subsidiary of LG Electronics.
The HVAC system at LG Science Park, unveiled on this day, serves as a representative example demonstrating LG Electronics' technological prowess and integrated operational capabilities. In particular, the AI-based smart building solution, LG Beacon Cloud Platform, is applied, enabling real-time monitoring and automatic control of HVAC products for temperature, power, and more. This not only reduces unnecessary energy consumption but also utilizes AI technology to predict potential failures in advance.
LG Electronics has two solutions targeting data centers: liquid cooling, which directly cools chips using a cooling distribution unit (CDU), and air cooling, which lowers the temperature inside data centers using chillers. The CDU was unveiled to the media for the first time on this day, showcasing its technology that allows the system to operate using pump and other sensor data even if key sensors fail, thanks to "virtual sensor" technology.
Liquid cooling distribution unit (CDU), a liquid cooling solution for AI data centers. LG Electronics
LG Electronics plans to advance its HVAC business model through strategies such as a locally complete value chain, expansion into non-hardware (Non-HW) sectors, and sequential acquisitions.
In regions such as North America and Europe, LG Electronics is targeting the market with high-efficiency HVAC solutions tailored to local climates and residential environments. In North America, where ducted air conditioning products are widely used, the company focuses on unitary product lines suitable for residential structures, while in Europe, it prioritizes air-source heat pumps that align with greenhouse gas reduction policies.
In the Global South, LG Electronics also aims to become a "local champion" with locally customized strategies. Last year, the company supplied high-efficiency chillers capable of cooling a complex the size of 130 soccer fields in Saudi Arabia, and in April of this year, it provided commercial system air conditioners to a massive logistics center in Singapore.
Furthermore, to advance its HVAC portfolio, LG Electronics is considering sequential acquisitions in adjacent fields that can create synergy with its existing business, based on the 3B (Build, Borrow, Buy) strategy. This refers to developing in-house capabilities, external collaborations, and mergers and acquisitions, in that order. Recently, the company acquired OSO, a European hot water solutions company.
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