LG Electronics will supply air-cooling products such as chillers and fan wall units, as well as liquid cooling technologies including coolant distribution units (CDUs)
In sum – what to know:
First energy-focused LG–SK collaboration – The MoU marks their entry into the AI data center cooling and energy market, leveraging joint expertise in HVAC and power optimization.
Integrated AI-driven cooling and power – LG will provide advanced cooling systems while SK delivers energy supply, storage, and AI-based management tools to cut power use and improve efficiency.
Next-gen EaaS and global expansion – Plans include waste heat utilization, ESS-driven peak management, and cooling via fuel cells, aiming to reduce carbon footprints and grow in global markets.
Korean giant LG Electronics has partnered with compatriot firm SK Innovation, part of the SK Group, to jointly develop and commercialize advanced cooling and energy solutions for artificial intelligence (AI) data centers.
Korean press reports stated that the pair signed a memorandum of understanding (MoU) which marketd their first-ever collaboration in the energy sector.
Under the terms of the partnership, LG Electronics will supply air-cooling products such as chillers and fan wall units, as well as liquid cooling technologies including coolant distribution units (CDUs). Meanwhile, SK Innovation will handle the energy side, contributing AI-powered data center management systems (DCMS), auxiliary power solutions such as energy storage systems (ESS) and fuel cells, and power peak reduction systems.
The two firms also plan to co-develop next-generation integrated systems capable of automatically adjusting cooling operations with AI-driven, real-time energy analysis. Collaboration will extend into the so-called Energy as a Service (EaaS) model, using waste heat for HVAC and optimizing power peak management through ESS, according to the reports. They two companies are also exploring ways to cool AI data centers with fuel cells while capturing and reusing the resulting waste heat, it added.
Kim Moo-hwan, head of SK Innovation’s Energy Solution Business Division, said: “With this agreement, we plan to establish ourselves as a turnkey provider offering verified integrated data center solutions to customers by integrating the optimized technologies of both companies.”
Lee Jae-sung, executive vice president and head of LG Electronics’ ES Business Division, added, “Based on the technological synergy between the two companies, we will strengthen our competitiveness in the global AI data center market, from data center cooling solutions to integrated solutions that can reduce energy costs.”
Last month, LG Electronics was 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.
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.
