1 day Ago By Korea Bizwire
LG Electronics announced on April 13 that it will participate for the first time in “Data Center World (DCW) 2025,” to be held April 14–17 (local time) in Washington, D.C., USA.
The photo shows a model presenting the company’s liquid cooling solution (CDU), developed based on its HVAC technology. (Image provided by LG Electronics) SEOUL, April 14 (Korea Bizwire) — LG Electronics’ heating, ventilation, and air conditioning (HVAC) business is emerging as a core growth engine, reporting over 3 trillion won in first-quarter revenue this year, according to industry estimates. This marks a robust debut for the newly launched ES Business Division, which was established as a standalone unit in late 2024.
Analysts from Daishin, iM, Korea Investment & Securities, and Hana Securities all estimate LG’s ES division posted Q1 sales exceeding 3 trillion won, with operating profits expected to reach around 350 billion won. Despite being the smallest by revenue among LG’s four divisions, the HVAC unit reportedly achieved the highest operating profit margin, solidifying its role as one of the company’s most resilient segments. Spin off from LG’s H&A division, the ES Business Division reported full-year 2024 sales of 8.
82 trillion won and operating profit of 675.3 billion won, achieving an operating margin of 7.7%—the highest among LG divisions.
CEO Cho Joo-wan highlighted the company’s ambition to double its HVAC business to 20 trillion won by 2030 during a shareholder meeting in March, citing the booming demand for advanced cooling in AI-era infrastructure such as data centers and semiconductor fabs. The company is rapidly scaling its presence in this market. LG recently secured an agreement with Microsoft CEO Satya Nadella to supply cooling solutions for Microsoft’s data centers.
The deal underscores LG’s push into the rapidly expanding field of data center thermal management, driven by the explosive growth of AI computing. LG Electronics’ customized HVAC products for clients (Image provided by LG Electronics) At the upcoming Data Center World (DCW) 2025 conference, held April 14–17 in Washington, D.C.
, LG Electronics will unveil its full lineup of cooling products including its CDU (Coolant Distribution Unit), which enables direct-to-chip liquid cooling. The CDU features LG’s proprietary virtual sensor technology, which compensates for sensor malfunctions in real-time to maintain system stability, as well as high-efficiency inverter pumps that optimize coolant flow based on demand. LG aims to complete CDU development by mid-2025 and begin supplying global AI data centers by the end of the year.
The company will also showcase its flagship oil-free inverter turbo chiller and Fan Wall Unit (FWU), both engineered for precision airflow control and high energy efficiency. LG plans to introduce a hybrid cooling system that combines liquid and air cooling to meet the evolving architecture of next-gen AI data centers, alongside its AI-powered BECON system for real-time building energy analytics. To support this expansion, LG has established a dedicated AI data center cooling testbed at its Pyeongtaek chiller plant, where it is conducting comprehensive evaluations of CDU, chillers, and FWU within server rack environments.
Immersion cooling technology, which submerges equipment in non-conductive liquid, is also under development. “With a portfolio that spans chillers to CDU and FWU, LG Electronics is a well-prepared player in the AI data center cooling space,” said Lee Jae-sung, Executive Vice President and head of the ES Business Division. “We will accelerate B2B growth by leveraging our differentiated HVAC technologies.
” Kevin Lee ([email protected]).
