LG Electronics and Microsoft will be teaming up to build AI data centers. Reportedly, South Korea’s LG Electronics Inc said on Friday that Microsoft and LG affiliates are pursuing overall business cooperation regarding data centers, but no specific deal has been signed at this time.
Recent statements by LG show that the two companies are exploring cooperation on data‑center technology, with LG affiliates potentially supplying critical infrastructure — including cooling systems, energy storage, and thermal‑management solutions — for Microsoft’s AI‑driven data centers. This reflects growing interest in end-to-end solutions able to meet the high energy, heat and reliability demands of modern AI workloads.
LG, for its part, has been aggressively pushing into data‑center infrastructure under its “One LG Solution” strategy. This involves combining the strengths of multiple LG affiliates (cooling, energy, design/operations) to offer a unified, scalable platform for AI-era data centers. In 2025, LG showcased advanced thermal‑management systems — chillers, direct‑to‑chip coolant distribution units (CDUs), room handlers and modular infrastructure — designed to handle the intense thermal loads associated with high‑performance computing hardware.
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If this collaboration progresses to a formal agreement, it could carry major implications. For Microsoft, leveraging LG’s integrated cooling and energy‑management solutions could help scale its AI data‑center infrastructure more efficiently and sustainably — a critical advantage as demand for AI compute power surges. For LG, it extends its HVAC and energy‑infrastructure business beyond traditional markets into the lucrative and rapidly expanding AI data‑center sector globally.
Reportedly, the regulatory filing was in response to a South Korean newspaper report saying that LG Electronics, LG Energy Solution and other LG affiliates are set to supply key parts and software, such as temperature controls and energy storage systems, for Microsoft’s AI data centers.
AI data centers are specialized facilities designed to handle the unique requirements of artificial intelligence workloads, including machine learning, deep learning, and large-scale data processing. Unlike traditional data centers, they house high-performance computing hardware such as GPUs, AI accelerators, and high-speed networking to support rapid computations and large memory requirements.
These centers require advanced cooling and power-management systems because AI hardware generates significantly more heat and consumes more electricity than standard servers. AI data centers are essential for training complex models, running inference at scale, and supporting cloud-based AI services.
The emerging collaboration between LG Electronics and Microsoft highlights the growing importance of AI data centers in supporting modern computational demands. These centers are designed to handle intensive workloads such as machine learning, deep learning, and large-scale data processing, requiring specialized hardware, high-speed networking, and advanced power and cooling systems.
LG’s focus on integrated infrastructure solutions, under its “One LG Solution” strategy, demonstrates the need for end-to-end approaches that combine cooling, energy management, and modular designs to meet the high reliability and efficiency standards of AI operations. Efficient AI data centers not only enable faster computation and model deployment but also allow companies to manage operational costs and energy consumption.
As AI workloads continue to grow in complexity and scale, the ability of data centers to deliver high reliability, low latency, and sustainable operations will increasingly define competitive advantage.