LG to build $35.9m R&D hub for AI data centers

LG Electronics will invest 50 billion won (US$35.87 million) to build a new R&D center for heating, ventilation, and air conditioning (HVAC) in Changwon, South Gyeongsang Province, South Korea.

The company signed an agreement with Changwon National University to build the LG Electronics HVAC Research Center, which is scheduled for completion in the first half of 2027.

The 13,200-square-meter facility will focus on developing air conditioners, heat pumps, chillers, and cooling solutions for data centers.

The center will be Korea’s first facility able to conduct both extreme high- and low-temperature tests at the same time.

LG is advancing core HVAC technologies such as compressors, motors, pumps, heat exchangers, and inverters, and is developing solutions for stricter environmental regulations.

The company plans to relocate its HVAC Academy, currently at Changwon Smart Park, to the new site to expand training for domestic and global engineers.

LG Electronics has been focusing on thermal management systems in AI data centers.

🔗 Source: The Korea Herald

🧠 Food for thought

1️⃣ Data center cooling emerges as major HVAC growth driver amid AI boom

LG’s specific focus on data center thermal management systems reflects a strategic shift toward one of HVAC’s fastest-growing segments.

The company is developing “large-scale chillers and liquid cooling distribution units” as a new growth driver for its HVAC business, positioning itself for the massive infrastructure demands created by AI computing1.

This timing aligns with broader industry trends, as the global HVAC market is projected to reach $228.74 billion by 2030, growing at 5.5% annually2.

Data centers require specialized cooling solutions that operate continuously and handle extreme heat loads, creating a premium market segment distinct from traditional commercial HVAC applications.

LG’s investment in simultaneous extreme temperature testing capabilities, making it Korea’s first facility with this capability, directly addresses the technical challenges of keeping data centers operational under varying environmental conditions1.