LG CNS is accelerating its efforts to dominate the future artificial intelligence (AI) data center market.
LG CNS has been pursuing data center design, construction, and operation (DBO) projects for large-scale data centers owned by asset management companies and various corporations, including financial and gaming companies. It is reported that LG CNS holds about a 60% market share in the design and consulting areas of the data center DBO business.
In the second quarter of this year, LG CNS's cloud and AI business revenue was reported at 872.4 billion won, an 8.2% increase compared to the same period last year. This accounted for about 60% of total revenue. The company noted, "In particular, we have successfully carried out various data center projects domestically and internationally, achieving an average annual growth rate of 31.7% over the past five years."
LG CNS has been building and operating data centers in global hubs such as Busan Global Cloud Data Center, Sangam IT Center, and Gasan Center, as well as in the U.S., Europe, and China. Since 2020, it has taken on large-scale hyperscale data center construction projects in Hanam, Jukjeon, and Samsong, in strategic partnerships with various asset management companies.
Based on this experience, LG CNS plans to enter the emerging AI data center business as a future growth area. As part of this initiative, it is enhancing its core technological capabilities necessary for AI data centers. The AI data center requires technologies such as "immersion cooling," which cools servers using special liquid, and "digital twin" technology, due to the ultra-high-power hardware utilized. LG CNS is conducting research projects on immersion cooling technology in collaboration with the Korea Energy Technology Evaluation and Planning (KETEP) under the Ministry of Trade, Industry and Energy, and has secured digital twin technology that virtually implements data centers for real-time monitoring of electrical equipment and power flow.
Infrastructure capabilities are also being improved. AI data centers must be equipped not only with physical centers but also with cloud infrastructure and AI solution areas. LG CNS plans to provide an integrated infrastructure platform optimized for implementing AI data center services.
It is also securing technologies for environmentally friendly data centers. LG CNS has been recognized for its eco-friendly technology and design, becoming the first in Korea to win the prestigious industry award, the "Brill Awards". It is focusing on the introduction of its patented "built-up constant temperature and humidity system," the "wind path system" that maximizes air circulation, replacing old equipment to enhance energy efficiency, and strengthening energy monitoring.
It is also expanding overseas operations. LG CNS is currently undertaking projects related to AI data centers being built in Jakarta, Indonesia. It has completed consulting and design projects and is now preparing to bid for large-scale construction projects.
Additionally, it has collaborated with LG Electronics and LG Energy Solution to create a data center solution called "One LG." In this solution, LG CNS handles data center design, construction, and operation, while LG Electronics manages heat through cooling equipment such as chillers and cooling distribution units (CDU). LG Energy Solution is responsible for battery equipment and electrical technology. All technologies and equipment are applied from the planning phase of the AI data center design.
An LG CNS official stated, "The biggest advantage of the 'One LG' solution is that it allows for 'customer-tailored' designs, rather than standardized packages," and noted, "We have already applied it in several data centers across the country for practical validation."
Going forward, LG CNS plans to expand its AI data center business to neighboring countries, starting with Indonesia, Singapore, Malaysia, and Vietnam.