LG Signs MOU to Power NEOM AI Center Cooling

LG Electronics signed a strategic memorandum of understanding (MOU) with SHAKER Group and international data infrastructure provider DATAVOLT to provide cutting-edge cooling solutions for a next-generation AI data center that is being developed in Oxagon, the industrial powerhouse of NEOM.

Under the deal, LG will provide leading-edge thermal management systems including large-scale chillers and coolant distribution units, that are capable of addressing the performance and sustainability requirements of hyperscale, AI-ready data centers.

"We are constructing a new generation of net-zero, AI-ready data centers optimized for performance, scale and sustainability. Teaming with LG enables us to integrate best-in-class cooling technologies that are key to enabling the digital transformation of governments and businesses." stated Rajit Nanda, DATAVOLT CEO.

Key highlights:

• LG signs MOU to supply cooling systems for NEOM’s AI data center in Oxagon, partnering with DATAVOLT and SHAKER Group
• The project marks LG’s first AI data center cooling deal in the Middle East, expanding its footprint in digital infrastructure
• The partnership supports LG’s Global South strategy and strengthens its presence in high-growth, tech-driven markets

Mohammed Ibrahim Abunayyan, CEO of SHAKER Group, emphasized the strategic nature of the collaboration: “Our 30-year partnership with LG has shaped Saudi’s HVAC market. This new step with DATAVOLT and LG supports the Kingdom’s ambition to be a global technology hub.”

Also Read: What's on the Line as the US Grants Saudis Access to Advanced AI Chips

The alliance also reflects LG CEO William Cho's Global South approach. "The Middle East presents rich B2G and B2B potential. We are focused on seizing new growth throughout the region by delivering differentiated AI and smart home solutions.” stated Cho

This investment is the first step by LG to expand its presence in AI infrastructure and further solidifies its "One LG Solution" strategy, combining strengths among affiliates such as LG CNS and LG Energy Solution. The acquisition reflects LG's focus on sustainable, high-performance technologies for developing markets.