As the era of artificial intelligence (AI) is accelerating, an analysis has emerged that the liquid cooling market, aimed at controlling the greatest threat to AI data centers – 'heat' – has entered a full commercialization phase starting this year. Liquid cooling circulates coolant directly over server chips, similar to how a car radiator works, which is regarded as more efficient and stable compared to traditional air cooling methods that blow cold air. In line with this trend, Samsung Electronics and LG Electronics are also focusing on the heating, ventilation, and air conditioning (HVAC) business, including liquid cooling, to recover from the sluggishness of their home appliance businesses and secure new sources of revenue in the B2B (business-to-business) market.
◇ Big tech ignites liquid cooling… market penetration doubles in one year
According to market research firm TrendForce on the 22nd, the penetration rate of liquid cooling in AI data centers is expected to expand more than twice from 14% last year to 33% this year, due to the increased power consumption of AI servers that have dozens of chips.
For example, NVIDIA's latest AI accelerators, the GB200 and GB300-based NVL72, consume 130–140 kW (kilowatts) of power per server rack, which is enough to operate an entire small factory. Depending on the scale of the data center, dozens to thousands of server racks are installed, making it difficult to cope with the heat generated using only traditional air cooling methods that rely on large fans and air conditioners. Excessive heat can decrease server performance and shorten equipment lifespan.
As a result, global big tech corporations are accelerating their transition to liquid cooling. Major cloud service providers (CSPs) such as Google, Amazon Web Services (AWS), and Microsoft (MS) are increasing the number of data centers that incorporate liquid cooling in their designs across North America, Europe, and Asia. Google and AWS have begun operating new data centers equipped with liquid cooling pipelines in Europe, including the Netherlands and Ireland, while MS plans to adopt liquid cooling as the standard design for new data centers starting this year, after completing pilot operations in the Midwest U.S. and Asia. TrendForce noted, "The introduction of liquid cooling will become full-scale this year, and starting in 2027, next-generation cooling methods that utilize only liquid will dominate the market."
◇ Samsung through M&A, LG through its own technology… seeking future paths in air conditioning
Currently, the global data center cooling market is led by infrastructure specialists such as Vertiv in the U.S. and Delta in Taiwan. Among them, Samsung Electronics and LG Electronics view this market as a key pillar to recover from their home appliance business downturn and are actively entering. Samsung Electronics' home appliance business has fallen into a low-profit structure, with an operating profit margin ranging from 0% to 1% this year, and LG Electronics is also in dire need of new revenue sources due to stagnation in the growth of its home appliance sector, which used to play a cash cow role. An industry insider said, "The liquid cooling market, especially within the high-growth B2B transaction sector, is an opportunity that must be seized," adding, "We expect to fully recover the poor profitability of the home appliance business through this."
Samsung Electronics is broadening its air conditioning portfolio through both acquisitions and partnerships. In May, it acquired the German company FläktGroup, a major player in air conditioning, for about 1.5 billion euros (approximately 2.2 trillion won), securing capabilities for cooling equipment dedicated to data centers. Fläkt has established itself as a leader in the field of cooling distribution devices that directly circulate coolant over server chips and has built a strong supply track record for large data centers in Europe. Last year, the company also established a joint venture with the American HVAC specialist Lennox to strengthen its distribution network for commercial heating and cooling equipment in North America.
LG Electronics is accelerating its penetration into the data center cooling market through an 'internalization strategy' based on self-developed technologies. It has set a goal to more than triple its data center cooling contracts this year compared to the previous year and plans to commercialize liquid cooling devices by the end of this year for full supply starting next year. To achieve this, the company is building a testbed that replicates the actual AI server environment at its Pyeongtaek factory to validate product reliability and is conducting pilot applications in collaboration with telecommunications companies.