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<\/p>\nCompany Accelerates Growth Strategy, Expanding Footprint in the Global South<\/p>\n
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Ain Alalam – Rashad Iskandrni<\/p>\n
Sep. 8, 2025 \u2014 LG Electronics (LG) CEO William Cho is advancing the company\u2019s 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\u2019s NEOM City project.<\/p>\n
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.<\/p>\n
DATAVOLT, headquartered in Saudi Arabia with offices in the USA, Uzbekistan, India and the UAE, and with a presence in South Korea and South Africa, 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.<\/p>\n
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\u201cWe are building a new generation of net-zero, AI-ready data centers designed for performance, scale and sustainability,\u201d said Rajit Nanda, CEO of DATAVOLT. \u201cPartnering 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.\u201d<\/p>\n
\u201cOur 30-year partnership with LG has been instrumental in shaping the HVAC market in Saudi Arabia, and today\u2019s collaboration marks another step forward in that journey,\u201d said Mohammed Ibrahim Abunayyan, CEO of SHAKER Group. \u201cBy joining forces with LG and DATAVOLT, we are driving innovation in advanced, energy efficient cooling solutions and supporting the Kingdom\u2019s ambition to become a global technology hub.\u201d<\/p>\n
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.<\/p>\n
The collaboration is also meaningful from the perspective of LG\u2019s \u201cOne LG Solution\u201d 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\u2019s global network.<\/p>\n
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.<\/p>\n
\u201cThe Middle East and Africa hold tremendous potential,\u201d said CEO Cho. \u201cThe 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.\u201d<\/p>\n
Recently, Pilwon Jung, LG\u2019s 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.<\/p>\n
This marks CEO Cho\u2019s 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\u2019s growth strategy, with the company positioning the region as a key engine for long-term expansion amid shifting global economic dynamics.<\/p>\n
The Middle East and Africa together account for about a quarter of the world\u2019s 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\u2019s 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 \u2013 the highest in three years.<\/p>\n
LG has a long history in the Middle East and Africa, first entering the region through branches in Kuwait (1979) and C\u00f4te d\u2019Ivoire (1990). Over the past five years, LG\u2019s sales in the region have grown by more than 30 percent.<\/p>\n
In HVAC, LG continues to introduce solutions designed for the region\u2019s 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.<\/p>\n
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About LG Electronics Eco Solution Company<\/p>\n
The LG Eco Solution Company (ES) offers advanced air conditioning solutions, including chillers, for diverse sectors and climates. Committed to exceptional HVAC performance, the ES Company aims to enhance indoor comfort and well-being with innovative air care products. Leveraging deep industry expertise, it offers digital-ized HVAC solutions designed for better life. As a trusted partner, the company integrates cutting-edge tech-nology into daily operations while offering ongoing support. For more information, please visit www.lg.com\/global\/business\/hvac.<\/p>\n
www.LGnewsroom.com<\/p>\n
About DATAVOLT<\/p>\n
DATAVOLT is an operator of data centers, integrating dedicated high-availability multi-technology renewable energy infrastructure solutions and green fuels, with a strong focus on innovation, sustainability, and scalabil-ity. Headquartered in Saudi Arabia, with offices currently in the USA, Uzbekistan, India, and the UAE, and presence in South Korea and South Africa. DATAVOLT has strong global ambitions spanning across the Mid-dle East, Africa, and Asia. DATAVOLT\u2019s core focus is servicing the needs of hyperscalers, large enterprises, and government institutions. www.data-volt.com.<\/p>\n
About SHAKER Group<\/p>\n
SHAKER was founded in 1950 and is the sole distributor and manufacturer of LG Air Conditioners in Saudi Arabia. SHAKER has been a publicly listed company on the Saudi Exchange (Saudi Exchange) since 2010. Throughout the years, SHAKER has positioned its name among the top Saudi companies, providing a range of integrated solutions in Air Conditioners in the Saudi market and the region. For more information, visit: http:\/\/www.SHAKER.com.sa\/<\/p>\n[\/mhc_text][\/mhc_column][\/mhc_row][\/mhc_section]\n","protected":false},"excerpt":{"rendered":"
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