LG aims to expand HVAC business to $15 billion in sales by 2030
In 2025, LG Electronics expects to more than triple orders for its data center cooling solutions compared to the previous year, marking it as a key growth engine. LG is also actively pursuing strategic acquisitions to reinforce its HVAC expertise and broaden its portfolio.
LG Electronics has unveiled an ambitious plan to expand its heating, ventilation and air conditioning (HVAC) business to 20 trillion won (USD 14.6 billion) in annual sales by 2030.
“HVAC demand is skyrocketing in the AI era,” Lee Jae-sung, president of the eco solution division at LG Electronics, said, according to a report by The Korea Herald. “Until now, we’ve focused on residential and commercial HVAC, but we’re now expanding into industrial and infrastructure applications — including hyperscale data centers — in line with the evolution of our technology and market.”
LG continues to scale its presence in the B2B sector, supplying advanced chiller systems for data centers and large-scale commercial buildings. With the global chiller market expected to reach USD 12 billion by 2027, the company aims to reach USD 720 million (KRW 1 trillion) in sales within two years, establishing the business as a core future growth driver, the South Korean company said in a media release.
LG’s portfolio includes diverse data center-specific cooling technologies — such as liquid cooling systems using coolant distribution units to directly cool server chips, chiller-based air cooling systems and HVAC solutions compatible with direct current power environments. In 2025, LG expects to more than triple orders for its data center cooling solutions compared to the previous year, marking it as a key growth engine, it said.
To develop optimized solutions for AI data centers, LG established a dedicated testbed — the LG AI Data Center HVAC Solution Lab — at its Pyeongtaek chiller plant earlier this year. The facility simulates a wide range of AI server environments to conduct systematic performance testing of LG’s advanced cooling solutions. Most recently, the company began pilot testing its liquid cooling technology in collaboration with LG U+, a leading South Korean telecommunications and digital services provider, to further validate and refine its thermal management capabilities.
As part of its growth strategy, LG is actively pursuing strategic acquisitions to reinforce its HVAC expertise and broaden its portfolio. Most recently, the company acquired a 100 percent stake in OSO, a leading Norway-based water heating solutions provider, to solidify its position in the European heating market.
LG is also rapidly expanding its presence in the commercial HVAC market, delivering solutions to logistics centers, retail complexes and other large infrastructure projects, the company said.
