Samsung Electronics and LG Electronics are intensifying efforts to expand their data center cooling solutions amid growing demand driven by increasingly power-intensive artificial intelligence (AI) chips. As AI processors accelerate workloads and generate substantial heat, efficient thermal management has become a critical challenge for data center infrastructure.
Traditional air cooling methods are reaching operational limits as next-generation AI accelerators, such as Nvidia’s B200, consume more than 1,000 watts per chip. This shift has propelled the adoption of liquid cooling technologies, which use cold plates to directly extract heat from processors. The heated coolant is then circulated through a coolant distribution unit (CDU) to a chiller system.
Industry data indicates that liquid cooling was employed in approximately one-third of AI chips in 2025. This figure is expected to increase to 53% in 2026 and approach 60% by 2027, reflecting a rapid transformation in data center cooling strategies.
LG Electronics is actively exploring locations for its first chiller manufacturing facility in the United States, aiming to be closer to leading hyperscalers and major technology companies. Virginia is among the potential sites under consideration, though LG has said it is reviewing several options. This move would augment LG’s existing production capabilities in Pyeongtaek, South Korea, and China, enabling shorter supply chains to North American customers.
The company reported a tripling of data center chiller orders in 2025 compared to the previous year. LG anticipates reaching one trillion won (approximately US$730 million) in annual chiller revenue by 2027, surpassing earlier projections. During its second quarter earnings call, LG highlighted efforts to deepen partnerships with hyperscalers, colocation facility operators, and major distribution channels across North America. The company is also pursuing contracts for integrated thermal management systems that combine chillers, CDUs, and other liquid cooling components.
LG recently achieved a milestone as the first South Korean company to earn Nvidia’s final quality certification for a 600-kilowatt CDU. This component is essential for regulating coolant temperature and pressure while maintaining cleanliness as the fluid circulates through server cold plates and returns to the chiller. Market analysts at Kyobo Securities forecast LG could secure new orders worth 2.5 trillion won by October, driven primarily by its AI data center HVAC business.
Samsung is enhancing its heating, ventilation, and air conditioning (HVAC) offerings through FlaktGroup, a Swedish climate solutions firm it acquired in 2025. On August 12, Samsung inaugurated a new FlaktGroup production line in Pune, India, intended to serve markets across India and the Asia-Pacific region. Construction started earlier this year, and the facility achieved mass production capacity within six months, with an annual output capability of up to 6,500 units.
In addition, Samsung is investing approximately 240 billion won in a new HVAC production line at its Gwangju plant’s third campus. Covering 21,800 square meters, this project represents the largest investment at the site since its establishment in 1989. Both companies’ expansions reflect the critical role of efficient cooling systems in enabling the broader adoption and scaling of AI technologies worldwide.