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LG inks NEOM Oxagon AI data center partnership

LG will supply advanced thermal management systems to support AI-driven data centers being developed by Saudi firm Datavolt

In sum – what to know:

LG supports NEOM AI hub – The company will supply cooling systems for a major AI data center at Oxagon, built by Saudi-based developer Datavolt.

Broader regional strategy – The project forms part of LG’s Global South growth push, with CEO William Cho highlighting Middle East and Africa as priority markets.

Energy efficiency focus – LG is expanding beyond HVAC to offer heat recovery, DC systems, and potential synergies with LG affiliates in batteries and digital infrastructure.

Korean company LG Electronics is expanding its role in the Middle East through a new agreement to provide cooling technology for a hyperscale AI data center planned in Oxagon, part of Saudi Arabia’s NEOM project.

Under the memorandum of understanding, LG will supply advanced thermal management systems to support AI-driven data centers being developed by Datavolt.

Datavolt, headquartered in Saudi Arabia, is building large-scale facilities designed to integrate renewable energy and alternative fuels. Its Oxagon site is expected to become one of the largest AI-focused data centers in the region, with additional projects underway in Uzbekistan, Bangladesh, and other Asian markets.

“We are building a new generation of net-zero, AI-ready data centers designed for performance, scale and sustainability,” said Rajit Nanda, CEO of Datavolt. “Partnering with LG allows us to integrate world-class cooling technologies that are critical to enabling the digital transformation of governments and enterprises across the Kingdom of Saudi and beyond.”

Under this project, LG plans to integrate large-scale chillers with distribution systems tailored for AI workloads. The company is also exploring heat recovery and direct-current power systems as part of broader energy-efficiency efforts. The initiative fits into LG’s “One LG Solution” strategy, which could eventually extend to batteries from LG Energy Solution and IT services from LG CNS.

LG has been recently selected to provide advanced cooling systems for a major AI data center under construction in Jakarta, Indonesia.

For the project, LG will supply a full suite of cooling technologies, including chillers and room-based cooling systems such as computer room air handlers (CRAH), air handling units (AHU), computer room air conditioners (CRAC), and fan wall units (FWU). A custom-designed building management system (BMS) will also be installed, with the aim of ensuring seamless integration and centralized control of all components, according to the Koreah company Together, these solutions aim to provide reliable and energy-efficient thermal management across the next-generation facility, it added.

This project brings together the capabilities of multiple LG affiliates. The Jakarta data center is being developed by LG Sinarmas Technology Solutions, a joint venture between LG CNS and Indonesia’s Sinar Mas Group. Situated in Jakarta’s central business district, the facility is expected to enter service in the second half of 2026.

ABOUT AUTHOR

Juan Pedro Tomás
Juan Pedro Tomás
Juan Pedro covers Global Carriers and Global Enterprise IoT. Prior to RCR, Juan Pedro worked for Business News Americas, covering telecoms and IT news in the Latin American markets. He also worked for Telecompaper as their Regional Editor for Latin America and Asia/Pacific. Juan Pedro has also contributed to Latin Trade magazine as the publication's correspondent in Argentina and with political risk consultancy firm Exclusive Analysis, writing reports and providing political and economic information from certain Latin American markets. He has a degree in International Relations and a master in Journalism and is married with two kids.