Accelerating B2B HVAC Leadership Through Industrial Solutions, Strategic Acquisitions and Localized Value Chains

 

SEOUL, July 8, 2025 — LG Electronics (LG), at a press conference held on July 8 at LG Sciencepark in South Korea, presented a strategic roadmap aimed at transforming its ES Company into a top-tier global provider of heating, ventilation and air conditioning (HVAC) solutions by 2030. To achieve this goal, the company plans to drive growth by expanding its industrial and commercial B2B revenue – including from AI data center cooling – and by providing regionally tailored heating and cooling solutions. In line with its “3B strategy” (Build, Borrow, Buy), LG will also pursue serial acquisitions to enhance core capabilities and diversify its business portfolio.

 

Boosting Industrial B2B Sales as Demand Surges in the AI Era

LG continues to scale its presence in the B2B sector, supplying advanced chiller systems for data centers and large-scale commercial buildings. LG’s portfolio includes data center-specific cooling technologies – such as liquid cooling systems using coolant distribution units to directly cool server chips, chiller-based aircooling systems and HVAC solutions compatible with direct current power environments.

 

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.

 

Strategic Acquisitions Fueling HVAC Capabilities and Portfolio Expansion

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.

 

Guided by its 3B strategy, LG is simultaneously building internal capabilities through initiatives like the Air Solution Lab and HVAC Academy (Build), forming R&D partnerships with academic institutions (Borrow), and continuing to identify high-impact M&A opportunities (Buy).

 

Expanding B2B Reach via Deep Localization and Non-Hardware Revenue Growth

LG is rapidly expanding its presence in the commercial HVAC market, delivering solutions to logistics centers, retail complexes and other large infrastructure projects. Recent highlights include the installation of its high-efficiency Multi V i™ system at a major logistics hub in Tuas, Singapore. These projects showcase LG’s ability to meet local regulations and customer requirements through tailored, region-specific solutions. 

 

The company is also accelerating growth in non-hardware revenue, aiming to increase its share from 10 percent to 20 percent. This includes offerings such as Building Energy Control (BECON), an AI-based integrated building management platform that provides real-time energy analytics. LG is also nearing commercialization of a digital twin system for data centers that can accurately predict server heat generation and optimize HVAC efficiency using AI-powered control systems.

 

Strengthening Global South Presence to Achieve Global Leadership

With strong localization at its core, LG is strengthening its presence in the rapidly expanding markets of the Global South through end-to-end localized operations that encompass R&D, manufacturing, sales and maintenance. The company is now accelerating its B2B expansion in emerging regions by delivering tailored solutions and strengthening its on-the-ground capabilities.

 

In India, LG is launching a new product development organization this year and establishing a new production line at its Sri City plant, scheduled to open in 2026. This new line will support regional demand with an annual capacity of up to 1.5 million air conditioning units.

 

Globally, LG is leveraging its HVAC Academy training centers to cultivate top-tier service, sales and engineering talent, while also using these facilities as strategic hubs to support regional expansion. The company currently operates HVAC Academies in 65 locations across 43 countries and plans to expand the network to 70 locations by the end of 2025.

 

“HVAC demand is rising in tandem with the growing number of data centers being built worldwide,” said James Lee, president of the LG ES Company. “Leveraging decades of experience and core technological excellence, LG is committed to becoming a leading HVAC solution provider in the AI era.”