July 21, 2024

This undated photo shows a data center Getty Images Bank
This undated photo shows a data center. Getty Images Bank

SEOUL, June 14 (AJU PRESS) – Samsung Electronics and LG Electronics are intensifying their efforts to gain a competitive edge in the global market for cooling devices used in data centers amid the ongoing artificial intelligence boom.

Demand for heating, ventilation and air conditioning (HVAC) systems is surging as they play a crucial role in preventing facility overloads and reducing energy consumption at data centers, which consume substantial power and generate significant heat.

According to market research firm IBIS World, the global HVAC market is projected to grow from $58.4 billion in 2023 to $61 billion by 2028.

In late May, LG’s stock price surged by 13.4 percent following a report that LG would supply HVAC systems, including chillers, to data centers in the United States. A chiller circulates cold water through a heat exchanger to supply cool air.

LG is also investing in global training centers, annually training over 30,000 HVAC engineers in 43 countries, including the U.S. and India.


LGs cooling system LG Chiller Courtesy of LG Electronics
LG’s cooling system, LG Chiller. Courtesy of LG Electronics

“LG Electronics has been continuously conducting research and development in air conditioning and cooling systems for 13 years since acquiring the air conditioning business of LS Mtron in 2011,” said Kim Dong-won, an analyst at KB Securities.

“With 50 percent of the power consumption in AI data centers used for cooling and more than one-third of data center operators concerned about power efficiency after installation, LG Electronics’ cooling system, with its high power efficiency and low maintenance costs, is expected to significantly stand out,” he added.

As of the first quarter of 2024, North America housed 5,350 data centers, representing about 45 percent of the world’s total of 11,800 data centers.

In a related move, Samsung Electronics has also partnered with U.S. HVAC company Lennox to form a joint venture, aiming to strengthen its presence in the North American market.

Shares of Samsung Climate Controls, a car parts unit specializing in HVAC technology, rose 22.82 percent on June 4, after Nvidia CEO Jensen Huang announced that the next-generation AI graphics processing unit (GPU) Rubin would go into mass production starting in 2026.

In February 2024, Samsung C&T, a construction arm, introduced a direct immersion cooling technique using an electrically non-conductive liquid. This method differs from conventional cooling systems that rely on air or water to cool servers. The system is known for reducing power consumption by nearly 80 percent compared to air-cooling systems.


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