Major South Korean companies are pursuing opportunities in the artificial intelligence (AI) market through their ties with US semiconductor company AMD. While Samsung Electronics and SK hynix maintain existing partnerships centered on high-bandwidth memory (HBM), LG Electronics is exploring new business opportunities in AI computing infrastructure.
Pursuing AI data center cooling opportunities through HVAC technology
LG Electronics participated in AMD's “Advancing AI World Tour Seoul 2026” in Seoul on November 4, expanding its engagement in AI computing infrastructure. While Samsung Electronics and SK hynix supply memory, LG Electronics appears to be seeking business opportunities in computing infrastructure and the ecosystem of applications.
LG Electronics is developing the AI data center market as a new growth area based on expertise accumulated in its heating, ventilation and air conditioning (HVAC) business. AI data centers operate high-performance graphics processing units (GPUs) and central processing units (CPUs) on a large scale, consuming more electricity and generating more heat than conventional data centers. Highly efficient cooling systems and power management technology are essential to maintaining stable computing conditions.
The company has a range of thermal management solutions, from air cooling to liquid cooling and immersion cooling. In liquid cooling in particular, it is expanding its business around coolant distribution units (CDUs). A CDU manages heat generated by chips by circulating coolant directly to GPUs and CPUs inside servers. It is considered a key component of next-generation data centers because it can effectively control heat from high-density AI servers while improving energy efficiency.
CDUs, integrated management and power infrastructure: expanding global production capacity
The company is also strengthening its software capabilities for integrated management of air conditioning equipment. LG Electronics' data center cooling management system (DCCM) provides integrated monitoring of major equipment, including CDUs, computer room air handlers (CRAHs) and chillers, and optimizes operating conditions. It uses AI and data analysis to identify early signs of abnormalities and support predictive maintenance and improvements in energy efficiency. The strategy is to build a business model that goes beyond supplying hardware to improve data center operating efficiency.
The company is also expanding into power infrastructure. LG Electronics is developing direct current (DC) grid solutions for data centers with LG Energy Solution, LS ELECTRIC, LS Cable & System and other partners. The approach reduces energy losses by cutting the number of power conversion stages within data centers. The company intends to combine cooling and power management capabilities to provide integrated solutions needed to build AI data centers.
Business results are also becoming apparent. In October, LG Electronics signed a long-term contract to supply cooling solutions totaling 5 gigawatts (GW) to US AI data center infrastructure company Air Control Concepts. Its orders for AI data center cooling solutions exceeded 600 billion won in the first half of 2026. To meet global demand, the company is establishing a chiller factory in Virginia in the United States and expanding domestic production lines in Pyeongtaek and Changwon.
Competition in the AI industry is expanding beyond the performance of individual semiconductors to encompass ecosystems including memory, processors, software and data center infrastructure. South Korean companies appear to be using their respective strengths as growth opportunities, including Samsung Electronics' and SK hynix's memory capabilities and LG Electronics' cooling and energy management technology. Their positions in the global AI industry are expected to expand further.
Original Korean article: press9.kr
English brief by Korea Wind Intelligence, koreawindintel.com
