LG Electronics, an appliance and consumer electronics corporation, has unveiled a roadmap to transform its ES Company into a major global provider of heating, ventilation, and air conditioning (HVAC) solutions by 2030.
LG Electronics said it will grow by expanding its industrial and commercial B2B revenue streams, such as artificial intelligence (AI) data center cooling, and offering region-specific heating and cooling products. It will also pursue acquisitions under its “3B strategy,” which is Build, Borrow, Buy, to strengthen its capabilities and diversify its business.
“HVAC demand is rising in tandem with the growing number of data centers being built worldwide,” said James Lee, president of the LG ES Company. “Leveraging decades of experience and core technological excellence, LG is committed to becoming a leading HVAC solution provider in the AI era.”
As part of its mid- to long-term plan, LG aims to achieve KRW 20 trillion in HVAC revenue by 2030. It also targets KRW 1 trillion ($720 million) in data center chiller sales within two years, positioning the business as a key growth driver as the global chiller market is projected to reach $12 billion by 2027.
LG supplies chiller systems for data centers and commercial buildings and offers a range of cooling technologies designed for data centers. These include liquid cooling systems using coolant distribution units to directly cool server chips, chiller-based air cooling, and HVAC systems designed for direct current power environments. The company expects orders for its data center cooling solutions to more than triple in 2025 compared to last year.
To support this growth, LG opened the LG AI Data Center HVAC Solution Lab at its Pyeongtaek chiller plant earlier this year. The facility allows for systematic testing of advanced cooling systems in simulated AI server environments. LG is also piloting its liquid cooling technology in partnership with LG U+, a South Korean telecommunications and digital services provider, to refine its thermal management capabilities.
The company continues to strengthen its expertise through acquisitions, including its recent purchase of Norway-based OSO, a water heating solutions provider, to reinforce its presence in Europe.
Through its 3B strategy, LG said it is also building internal know-how via the Air Solution Lab and HVAC Academy, while collaborating with academic institutions and pursuing targeted mergers and acquisitions.
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