LG Electronics (LG) has announced its bold ambition to transform its ES Company into a top-tier global provider of heating, ventilation, and air conditioning (HVAC) solutions by 2030. The Korean tech giant plans to achieve this through aggressive growth in industrial B2B sales, strategic acquisitions, and localized solutions tailored for each market.



Big Push into B2B as AI Data Centers Drive Demand

LG is strengthening its B2B HVAC business, with a focus on cooling solutions for data centers and large commercial buildings. With the global chiller market projected to reach USD 12 billion by 2027, LG aims to achieve USD 720 million (KRW 1 trillion) in sales within two years.

The company’s data center cooling lineup includes liquid cooling systems, chiller-based air cooling, and solutions compatible with direct current power setups. Earlier this year, LG opened the AI Data Center HVAC Solution Lab at its Pyeongtaek chiller plant to develop and test cooling technologies for AI server environments. It also began pilot testing its liquid cooling tech with LG U+ to fine-tune its thermal management capabilities.

Acquisitions to Strengthen HVAC Portfolio

As part of its “3B strategy” – Build, Borrow, Buy – LG is ramping up acquisitions to enhance its HVAC expertise. Its recent acquisition of Norway-based OSO, a leading provider of water heating solutions, solidifies its heating business in Europe.

Beyond acquisitions, LG is building internal capabilities through its Air Solution Lab and HVAC Academy, while also partnering with academic institutions to drive R&D initiatives.

Localized Solutions Powering Global Growth

LG continues to expand its footprint in the commercial HVAC market, delivering systems to logistics centers, retail hubs, and large-scale infrastructure projects worldwide. Recent highlights include the installation of its Multi V i™ system at a logistics hub in Tuas, Singapore, and the supply of 28,000 RT of chillers to The Avenues-Riyadh in Saudi Arabia. These projects underscore LG’s commitment to meeting regional standards and customer requirements through customized solutions.

The company also aims to double its non-hardware revenue share from 10% to 20% by expanding its offerings. One of them is BECON, an AI-based building management platform that provides real-time energy analytics and a digital twin system for data centers to optimize HVAC efficiency.

Strengthening Presence in the Global South

LG is making a significant investment in emerging markets, with plans to establish end-to-end, localized operations in the Global South. In India, LG will launch a new product development organization this year and open a new production line at its Sri City plant by 2026, aiming to achieve an annual capacity of up to 1.5 million air conditioning units.

To support global expansion, LG is leveraging its HVAC Academy training centers to nurture service, sales, and engineering talent. Currently operating in 65 locations across 43 countries, LG plans to expand to 70 locations by the end of 2025.

James Lee, president of LG ES Company, said:
“HVAC demand is rising alongside the growing number of data centers worldwide. Leveraging our core technologies and decades of experience, LG is committed to becoming a leading HVAC solution provider in the AI era.”

At the end of the day, for LG, it’s not just about advanced technology—it’s about creating meaningful experiences and solutions that improve everyday life.