LG Expands Global South Strategy with NEOM Data Centre Partnership

LG Electronics (LG) CEO William Cho is advancing the company’s Global South growth strategy through a partnership to deliver cooling solutions for an AI data centre being developed in Oxagon, the industrial hub of Saudi Arabia’s NEOM City project.

On September 2 in Riyadh, Cho met with Abdulelah Abunayyan, Chairman of SHAKER Group, the manufacturer and sole distributor of LG Air Conditioners, and Rajit Nanda, CEO of DATAVOLT, a global data infrastructure provider. Marking the 30th anniversary of LG’s partnership with SHAKER, the parties signed a memorandum of understanding (MOU) under which LG will supply advanced thermal management solutions for next-generation data centres developed by DATAVOLT.

DATAVOLT, headquartered in Saudi Arabia with offices in the USA, Uzbekistan, India and the UAE, is building hyperscale data centres that integrate renewable energy and alternative fuels. Its flagship project in Oxagon is set to become one of the largest AI data centres in the region, with further developments underway in Uzbekistan, Bangladesh, and other parts of Asia.

“We are building a new generation of net-zero, AI-ready data centers designed for performance, scale and sustainability,” said Rajit Nanda, CEO of DATAVOLT. “Partnering with LG allows us to integrate world-class cooling technologies that are critical to enabling the digital transformation of governments and enterprises across the Kingdom of Saudi and beyond.”

“Our 30-year partnership with LG has been instrumental in shaping the HVAC market in Saudi Arabia, and today’s collaboration marks another step forward in that journey,” said Mohammed Ibrahim Abunayyan, CEO of SHAKER Group. “By joining forces with LG and DATAVOLT, we are driving innovation in advanced, energy efficient cooling solutions and supporting the Kingdom’s ambition to become a global technology hub.”

LG is integrating large-scale chillers with coolant distribution units, positioning AI data centre thermal management as a new growth engine within its HVAC business. The company is also developing integrated solutions, including heat recovery and DC power systems, to further improve energy efficiency.

The collaboration supports LG’s “One LG Solution” strategy, leveraging affiliates such as LG Energy Solution and LG CNS for wider opportunities in battery systems and data centre design and operation.

During his visit, Cho reviewed LG’s performance in Saudi Arabia, Nigeria, the Levant and Maghreb, stressing the need to tailor strategies to local market dynamics.

“The Middle East and Africa hold tremendous potential,” said CEO Cho. “The Middle East offers abundant B2G and B2B opportunities driven by government-led industrial restructuring and large-scale development projects. By leveraging our strong brand and differentiated offerings in areas such as AI home and smart solutions, we need to focus on capturing new growth across the region.”

This marks Cho’s third visit to the Global South this year, underscoring its role as a cornerstone of LG’s long-term growth strategy.