LG Electronics, in a strategic partnership with SHAKER Group and DATAVOLT, is providing cooling solutions for an AI data center under development in Oxagon, the industrial hub of Saudi Arabia’s NEOM City project.
DATAVOLT, headquartered in Saudi Arabia with offices in the USA, Uzbekistan, India and the UAE, develops hyperscale data centers that incorporate renewable energy and alternative fuels. Its flagship project in Oxagon is planned as one of the largest AI data centers in the region. DATAVOLT is also investing in hyperscale data centers 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.”
By integrating large-scale chillers with coolant distribution units, LG is positioning AI data center thermal management as a new growth engine within its heating, ventilation and air conditioning (HVAC) business. In addition to cooling, LG is developing capabilities to propose integrated solutions such as heat recovery and DC power systems, which can further contribute to energy efficiency in data centers.
The collaboration is also meaningful from the perspective of LG’s “One LG Solution” strategy, which seeks to leverage capabilities across LG Group affiliates. Beyond thermal management, opportunities may extend to battery solutions from LG Energy Solution and data center design, build and operation solutions from LG CNS, drawing on LG Group’s global network.
“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.”
