Strategic Partnership for AI-Ready Data Centers
LG Electronics (LG) is accelerating its Global South growth strategy through a landmark partnership to provide cooling solutions for an AI data center at NEOM’s Oxagon, Saudi Arabia’s futuristic industrial hub.
On September 2, 2025, in Riyadh, LG CEO William Cho met with Abdulelah Abunayyan, Chairman of SHAKER Group, and Rajit Nanda, CEO of DATAVOLT, to sign a memorandum of understanding (MOU). Under this agreement, LG will deliver advanced thermal management systems to support DATAVOLT’s next-generation data centers.
Driving Innovation with DATAVOLT and SHAKER Group
DATAVOLT, headquartered in Saudi Arabia with operations across the USA, Uzbekistan, India, and the UAE, is developing some of the largest hyperscale AI data centers in the region. Its Oxagon project is planned as a flagship facility designed for scale, sustainability, and renewable energy integration.
“Partnering with LG allows us to integrate world-class cooling technologies that are critical to enabling the digital transformation of governments and enterprises,” said Rajit Nanda, CEO of DATAVOLT.
Mohammed Ibrahim Abunayyan, CEO of SHAKER Group, added:
“Our 30-year partnership with LG has shaped Saudi Arabia’s HVAC market. Together with LG and DATAVOLT, we are introducing advanced, energy-efficient cooling solutions that align with the Kingdom’s ambition to become a global technology hub.”
Cooling Solutions as a Growth Engine
LG is positioning AI data center cooling as a new growth engine within its HVAC business. By integrating large-scale chillers with coolant distribution units, the company is delivering energy-efficient thermal management.
In addition, LG is developing integrated solutions such as heat recovery systems and DC power technologies. These innovations aim to reduce energy consumption further and enhance sustainability across hyperscale data centers.
Leveraging “One LG Solution” Strategy
The collaboration also reflects LG’s broader “One LG Solution” strategy, which leverages group-wide synergies. Beyond cooling, opportunities may expand to battery solutions from LG Energy Solution and design-to-operation services from LG CNS, supported by LG’s global network.
CEO Cho’s Regional Focus
During his visit to Riyadh, CEO Cho reviewed LG’s business in Saudi Arabia, Nigeria, the Levant, and North Africa. He emphasized tailoring strategies to local market needs, highlighting the Middle East and Africa as key growth regions.
“The Middle East offers abundant opportunities driven by industrial restructuring and large-scale development projects,” Cho stated. “By focusing on AI and smart solutions, LG is well positioned to capture new growth.”
This visit marks Cho’s third trip to the Global South in 2025, following earlier visits to India, Vietnam, and Indonesia. The Global South remains a cornerstone of LG’s long-term expansion amid shifting global economic trends.
Strong Track Record in the Middle East and Africa
LG has operated in the Middle East and Africa for decades, first entering through branches in Kuwait (1979) and Côte d’Ivoire (1990). Over the last five years, the company’s sales in the region have grown by more than 30 percent.
In HVAC, LG continues to introduce climate-specific solutions in collaboration with SHAKER Group. These include heat-resistant exchangers designed to withstand sandstorms and high desert temperatures, produced at the local LG-SHAKER facility. LG also strengthens its service infrastructure with dedicated maintenance subsidiaries across the region.
