LG and Microsoft deepen AI partnership to build cooling solutions for data centers

LG Electronics Inc. and Microsoft Corp. have signed an agreement to extend their strategic AI partnership. The two companies will cooperate to commercialise AI data centers as Microsoft enlarges its global AI-data-center network, with LG offering high-capacity cooling solutions such as chillers and air-conditioning systems for key locations. LG’s existing thermal-management product line will be tapped to address the higher power and heat demands of GPU-dense AI facilities.

In addition, the partnership will broaden into "physical AI," applying AI technologies to sectors like manufacturing, logistics and mobility, with LG using Microsoft’s high-performance cloud to accelerate model training. The talks were held after LG Chairman Koo Kwang-mo met Microsoft CEO Satya Nadella at Microsoft’s Washington headquarters, accompanied by senior LG affiliate executives. This collaboration aims to combine LG’s hardware expertise with Microsoft’s cloud capabilities to advance AI infrastructure worldwide.