LG reveals HVAC expansion plans
13th July 2025
SOUTH KOREA: LG Electronics has revealed plans intended to make it a top-tier global HVAC solutions provider by 2030 with revenues of US$14.6bn.
This week, LG presented a strategic roadmap aimed at transforming its Energy Solutions business by expanding its industrial and commercial B2B revenue – including from AI data centre cooling – and by providing regionally tailored heating and cooling solutions.
In line with what it calls its 3B strategy (build, borrow, buy), LG will also pursue serial acquisitions and diversify its business portfolio. By strengthening its competitiveness in both high-efficiency HVAC hardware and non-hardware solutions, LG says it aims to achieve HVAC sales of around US$14.6bn by 2030 as part of its mid- to long-term growth strategy.
Data centre cooling
As demand surges in the AI era, and with the global chiller market expected to reach $12bn by 2027, LG says it aims to reach $720m in sales within two years.
Offering direct liquid cooling and chiller-based air cooling systems, alongside HVAC solutions compatible with direct current power environments, LG expects to more than triple orders for its data centre cooling solutions this year
LG established a dedicated test facility at its Pyeongtaek chiller plant earlier this year. The facility simulates a wide range of AI server environments to conduct systematic performance testing. It recently began pilot testing its liquid cooling technology in collaboration with LG U+, a leading South Korean telecommunications and digital services provider.
Acquisitions
As part of its growth strategy, LG is actively pursuing strategic acquisitions. Earler this month the company announced the acquisition of Norwegian water heater manufacturer OSO.
In addition to its data centre business, LG is expanding its presence in the commercial HVAC market. Recent highlights include the installation of its Multi V i VRF system at a major logistics hub in Tuas, Singapore, and the supply of 28,000RT of chillers to The Avenues-Riyadh, a major mixed-use complex in Saudi Arabia.
The company is also looking to accelerate growth from 10% to 20% in non-hardware revenue. This includes offerings such as Building Energy Control (BECON), an AI-based integrated building management platform. LG says it is also nearing commercialisation of a digital twin system for data centres that can predict server heat generation and optimise HVAC efficiency using AI-powered control systems.
While maintaining a strong presence in North America and Europe, the company is now accelerating its B2B expansion in emerging regions by delivering tailored solutions and strengthening its on-the-ground capabilities.
In India, LG is launching a new product development organisation this year and establishing a new production line at its Sri City plant, scheduled to open in 2026. This new line will support regional demand with an annual capacity of up to 1.5 million air conditioning units.
LG currently operates HVAC Academies in 65 locations across 43 countries and plans to expand the network to 70 locations by the end of 2025.
