LG: Life's Good, and Let's Grow! Major Expansion Plans Announced

South Korea, July 14, 2025 - RSES Journal has learned that LG Electronics intends to be a "top-tier" provider of HVAC solutions around the world by 2030, through a variety of growth initiatives.

The news was revealed during a press conference on July 8 at LG Sciencepark in South Korea. LG plans to achieve the goal by expanding revenue from industrial and commercial business-to-business offerings, including from artificial intelligence (AI) and data center cooling, and by promoting and selling additional regional heating and cooling solutions.

LG sources call it the "3B Strategy," for "Build, Borrow, Buy," and it will seek serial acquisitions to strengthen core capabilities and diversify its business portfolio. 

Related to data center cooling, LG wants to hit $720 million in US sales in data center solutions within two years. Sources said it expects to see orders for data center cooling solutions increase more than three times that of 2024.

“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.”

Dedicated research at the LG AI Data Center HVAC Solution Lab in Pyeongtaek chiller plant simulates diverse AI server environments so technical experts can achieve the best advanced cooling solutions.

Additional reported initiatives include the Air Solution Lab and HVAC Academy ("Build"), as well as establishing research and development partnerships with academic institutions ("Borrow") and seeking out impactful merger and acquisition targets ("Buy").

Non-hardware revenue is targeted to grow from 10 to 20 percent. Helping to achieve that goal is Building Energy Controls (BECON), an AI-based integrated platform for building management that offers real-time energy analytics.

LG is using the capabilities of its HVAC Academy training centers to grow top-tier personnel in service, sales and engineering, and those centers will also support regional expansion. There are currently 65 LG HVAC Academies across 43 countries, and plans are to add 5 additional locations by the end of 2025.