South Korean conglomerates LG and SK have formed a partnership to develop power and cooling solutions for AI data centers.

The companies last week announced a “strategic collaboration”, signing a Memorandum of Understanding (MOU) to bring together expertise from both companies and “drive innovation in energy solutions for data centers.”

The joint efforts will focus on technological advancement through R&D, exploring energy-as-a-service (EaaS) business models, and developing solutions to utilize waste heat from data centers. The partnership is structured around a long-term roadmap that includes joint technological collaboration, pilot implementations, and commercialization efforts.

The companies said LG Electronics will utilize its global expertise in cooling technologies to provide direct-to-chip cooling via cooling distribution units, water and air-cooled inverter chillers, and cooling control solutions.

SK Innovation will oversee power supply optimization and operations, including deploying AI-driven Data Center Management Systems, designing auxiliary power systems, and implementing power peak reduction strategies.

“Through this collaboration, LG Electronics will benefit from enhanced power supply stability and efficiency, while SK Innovation will expand its data center cooling technology portfolio with LG’s advanced solutions,” the companies said.

Lee Jae-sung, head of the ES business division at LG Electronics, said: “This agreement empowers us to enhance our competitiveness in the global AI data center market by integrating cooling solutions with energy cost-reducing technologies, leveraging the synergy of our partnership.”

Kim Moo-hwan, head of energy solution business division at SK Innovation, added: “Our joint efforts will establish us as a turnkey provider of integrated data center solutions, combining optimized technologies from both companies. We remain committed to advancing the energy industry, aligning with the AI era’s demands through strategic collaboration.”