LG TAPS MIDDLE EAST GROWTH WITH NEOM OXAGON AI DATA CENTER PARTNERSHIP

LG Electronics (LG) CEO William Cho is advancing the company's Global South growth strategy through a strategic partnership to provide cooling solutions for an AI data center under development in Oxagon, the industrial hub of Saudi Arabia's NEOM City project.

On September 2 in Riyadh, Cho met with Abdulelah Abunayyan, Chairman of SHAKER Group, the manufacturer and sole distributor of LG Air Conditioners, following the 30th anniversary of the strategic partnership; and Rajit Nanda, CEO of DATAVOLT, a global data infrastructure provider. The parties signed a memorandum of understanding (MOU) under which LG will supply advanced thermal management solutions for next-generation data centers being developed by DATAVOLT.

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.

“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.

During his visit, Cho also assessed the market environment and business performance of LG operations in Saudi Arabia, Nigeria, the Levant and Maghreb, highlighting the importance of tailoring strategies to local market dynamics.

Recently, Pilwon Jung, LG's regional representative for the Middle East and Africa, signed an MOU with Mohammad Al Habib Real Estate Co., a major Saudi developer actively involved in government-backed projects, including premium housing developments.

This marks CEO Cho's third visit to the Global South this year, following trips to India in January and to Vietnam and Indonesia in May. The Global South is a cornerstone of LG's growth strategy, with the company positioning the region as a key engine for long-term expansion amid shifting global economic dynamics.

The Middle East and Africa together account for about a quarter of the world's population and are recognized as regions of strong growth potential. In particular, the Middle East has accelerated diversification beyond oil under government-led initiatives. According to Korea Trade-Investment Promotion Agency's 2025 Export Outlook and Regional Market Conditions report, non-oil GDP growth in the Gulf Cooperation Council, including the UAE and Saudi Arabia, is projected to reach 4 percent this year – the highest in three years.

LG has a long history in the Middle East and Africa, first entering the region through branches in Kuwait (1979) and Côte d'Ivoire (1990). Over the past five years, LG's sales in the region have grown by more than 30 percent.

In HVAC, LG continues to introduce solutions designed for the region's climate in collaboration with SHAKER Group. These include outdoor units with heat exchangers engineered to withstand sandstorms and high temperatures, produced at the local LG-SHAKER manufacturing facility. LG is also strengthening its service infrastructure with dedicated maintenance subsidiaries across the region.

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