LG Partners With DATAVOLT to Power NEOM AI Data Center Growth
SEOUL – LG Electronics has signed a strategic agreement with Saudi-based DATAVOLT and SHAKER Group to supply advanced cooling systems for an AI data center under construction in Oxagon, part of Saudi Arabia’s NEOM project.
The move strengthens LG’s position in the Middle East and supports its long-term growth strategy in the Global South.
Key Details of the Partnership
- Date signed: September 2, 2025, in Riyadh
- Parties involved:
- LG Electronics (South Korea)
- SHAKER Group (Saudi Arabia, LG’s sole air conditioning distributor)
- DATAVOLT (Saudi-headquartered data infrastructure firm with offices in USA, Uzbekistan, India, UAE, South Korea, and South Africa)
- Objective: Supply and integrate LG’s large-scale thermal management technologies into DATAVOLT’s next-generation data centers
DATAVOLT’s flagship project in NEOM Oxagon is set to be one of the largest AI-ready data centers in the region, designed with renewable energy integration and net-zero targets.
Why It Matters
- For Saudi Arabia: Aligns with Vision 2030 to diversify beyond oil and become a global tech hub.
- For LG: Expands its HVAC business with AI-focused cooling and energy efficiency solutions.
- For DATAVOLT: Ensures world-class thermal management for hyperscale data infrastructure.
CEO Statements
- Rajit Nanda, CEO of DATAVOLT: “We are building AI-ready, net-zero data centers. LG’s cooling systems are key to enabling digital transformation in the Kingdom and beyond.”
- Mohammed Ibrahim Abunayyan, CEO of SHAKER Group: “This collaboration builds on three decades of partnership with LG and pushes innovation in energy-efficient cooling.”
- William Cho, CEO of LG Electronics: “The Middle East and Africa present major B2G and B2B opportunities. We are focused on capturing growth with differentiated AI and smart solutions.”
LG’s Expansion in the Region
- Sales in the Middle East and Africa have grown by more than 30 percent in the past five years.
- HVAC solutions tailored for local climates, including units resistant to sandstorms and extreme heat, are produced at the LG-SHAKER facility.
- Service infrastructure is expanding with new maintenance subsidiaries across the region.
Market Outlook
According to the Korea Trade-Investment Promotion Agency, non-oil GDP growth in Gulf Cooperation Council countries is forecast at 4 percent in 2025, the strongest pace in three years.
This growth supports increasing demand for advanced digital infrastructure.
Table: LG’s Global South Engagement in 2025
| Region | CEO Visit | Focus Area | Key Outcome |
|---|---|---|---|
| India | Jan 2025 | Smart appliances, AI homes | New product localization plans |
| Vietnam, Indonesia | May 2025 | Energy-efficient solutions | Expanded manufacturing partnerships |
| Saudi Arabia, MEA | Sep 2025 | Data centers, HVAC, real estate | MOU with DATAVOLT, SHAKER, Al Habib Real Estate |
