LG Electronics Discusses Cooling Solution Collaboration for Neom City with Saudi Government

Jo Joowan, CEO, Meets with Saudi Investment Minister
Supplying Cooling Solutions to Neom City AI Data Center
30 Years of Partnership with Saudi Arabia Since 1995
"Building Long-Term Opportunities in the Global South, Including the Middle East"

Jo Joowan, CEO and President of LG Electronics, met with Khalid Al-Falih, Minister of Investment of Saudi Arabia, on the 26th at Lotte Hotel in Jung-gu, Seoul, to discuss cooperation plans, including the supply of cooling solutions for the artificial intelligence (AI) data center currently under construction in Neom City, Saudi Arabia.

Jo Joowan, CEO of LG Electronics, met with Khalid Al-Falih, Minister of Investment of Saudi Arabia, on the 26th at Lotte Hotel in Jung-gu, Seoul, to discuss cooperation plans including the supply of AI data center cooling solutions. Photo by LG Electronics

Through this collaboration, LG Electronics is expected to gain an opportunity to establish itself as a key player in the AI-related industries in the Middle Eastern market. LG Electronics began its partnership with Saudi Arabia's Shaker Group in 1995 in the air conditioner business and established a joint venture in 2006 to manufacture air conditioning products within Saudi Arabia. This partnership has continued for nearly 30 years.

LG Electronics requested active support and cooperation from the Saudi government not only for its air conditioner and home appliance businesses in Saudi Arabia, but also for the supply of cooling solutions to the AI data center being built in Oxagon, the advanced industrial complex within Neom City. In addition, LG Electronics called for continued interest in its ongoing heating, ventilation, and air conditioning (HVAC) business initiatives in Saudi Arabia with local partners such as Shaker Group and the data infrastructure company Datavault.

Earlier this month, LG Electronics signed a strategic business agreement in Riyadh, Saudi Arabia, with the chairman of Shaker Group and the CEO of Datavault, a data infrastructure company, to cooperate as a strategic partner in providing thermal management solutions for Datavault’s next-generation data center. Datavault is a company engaged in the development and operation of hyperscale data centers based in Saudi Arabia, the United Arab Emirates, Uzbekistan, India, the United States, and other countries. The company is currently building the largest net-zero AI data center in the Middle East within Neom City, Saudi Arabia, and is also making consecutive investments in the construction of large-scale data centers in Asian regions such as Uzbekistan and Bangladesh.

Minister Khalid Al-Falih expressed his gratitude, saying, "I appreciate the continued friendly relationship with LG," and added, "Saudi Arabia is transforming into an export-driven country, and if we pursue export-leading businesses together, we will provide active support."

CEO Jo recently stated on LinkedIn, "The Middle East and Africa have tremendous potential, driven by government-led changes and large-scale development projects," and added, "Building sustainable and long-term opportunities in high-potential Global South markets, including the Middle East, is LG Electronics’ growth strategy." He also expressed confidence at IFA 2025, Europe’s largest home appliance exhibition, saying, "If all of Datavault’s data centers are equipped with our cooling solutions, we could achieve revenue in the trillion-won range."