The public and private sectors are launching an all-out offensive to conquer the overseas chiller market, a key infrastructure for AI data centers that is expected to grow at an annual average of 14% to reach $3.3 billion by 2030.

Minister of Trade, Industry and Energy Ahn Deok-geun visited LG Electronics' Pyeongtaek Chiller Plant on the 2nd to personally inspect the artificial intelligence (AI) data center cooling system production line and listened to industry opinions on site.

LG Electronics' Pyeongtaek Chiller Plant is a key production base for chillers for AI data centers that is producing visible results, such as signing a contract to supply data centers to major big tech companies in the United States.

Data centers are key infrastructure for implementing AI, and the Ministry of Trade, Industry and Energy has recognized AI semiconductors, power equipment, and cooling systems as three strategic items that can be fostered as next-generation export engines by taking advantage of the global AI craze, and has been providing intensive support.

Minister Ahn Deok-geun emphasized that AI semiconductors are expected to renew their all-time export performance thanks to HBM, which is being led by domestic companies, and that power equipment for stable power supply to data centers has also become a key item of our exports. He added that cooling systems, which are now rapidly growing as a solution to resolve heat generation issues, should be fostered as a leading player in our exports.

A chiller is a device that supplies cooling water through pipes to prevent equipment inside a data center from overheating. />
LG Electronics has been actively developing its chiller business since 2011 and is ranked first in Korea and fifth globally in the turbo chiller market.

LG Electronics has secured differentiated technologies such as applying oil-free magnetic bearing technology to large-capacity air-cooled chillers, and also has software competitiveness that controls and manages heating and cooling equipment as a single system.

Data centers have seen a significant increase in power consumption as generative AI such as Chat GPT has become popular. As a result, it has become difficult to efficiently manage heat with existing cooling systems, and LG Electronics' ultra-large cooling technology chiller has emerged as a key infrastructure for data centers.

The data center cooling market is expected to more than double to $17.2 billion by 2030, with chillers growing at a CAGR of 14% to $3.3 billion and liquid cooling growing at a CAGR of 15% to $4.6 billion.

“Chillers are an important pillar of the HVAC business that has driven LG Electronics’ B2B growth,” said Lee Jae-sung, head of LG Electronics’ ES business division. “We will strengthen collaboration and communication with the government to enhance the future competitiveness of the chiller business in the AI era.”

Minister Ahn Deok-geun said, “We will actively support our companies’ entry into the global data center market by focusing on export insurance of a total of 350 billion won by the end of the year for cooling systems such as chillers and constant temperature and humidity controllers, utilizing KOTRA trade centers and other organizations to discover overseas data center construction projects, and inviting ordering parties to hold consultation meetings.”

He added, “We will also provide full support to strengthen the competitiveness of cooling systems, including providing 130 billion won to secure core technologies such as advanced cooling system technology and 18 billion won to demonstrate cutting-edge cooling systems such as liquid immersion cooling.”