LG Electronics Inc. and LG Energy Solution Ltd. have signed a memorandum of understanding with Microsoft Corp. to provide integrated hardware and software for artificial intelligence data centers under construction in the United States, according to people familiar with the matter.
The South Korean conglomerate will deliver its offerings on a turnkey basis, combining thermal management systems from LG Electronics with battery-based uninterruptible power supplies from LG Energy Solution. The deal expands upon a strategic partnership the two companies announced at CES 2025 in Las Vegas, where they outlined plans for joint development of cooling technologies for AI-driven facilities.
LG has been aggressively positioning itself in the data center infrastructure market through its “One LG Solution” initiative, which bundles cooling systems, power equipment, and operational technology from multiple group affiliates. The company has targeted the explosive growth in AI-related infrastructure spending as hyperscalers race to expand capacity.
The data center liquid cooling market alone is forecast to balloon from US$5.65 billion in 2024 to US$48.42 billion by 2034, according to Research and Markets, driven by demand from high-performance AI computing facilities.
Microsoft has been among the most aggressive builders of AI infrastructure as it seeks to expand capacity for its Azure cloud services and partnership with OpenAI. The software giant has committed tens of billions of dollars to data center construction globally.
