SEOUL, August 19 (AJP) - Samsung Electronics is stepping up its bet on AI data-center cooling with a 240 billion won ($173 million) production line in South Korea, targeting growing demand to manage the heat generated by increasingly powerful AI servers.
The company said Wednesday it will build the new heating, ventilation and air conditioning (HVAC) production line at its Gwangju complex, expanding its push into AI data-center cooling following its acquisition of FläktGroup last year.
Samsung, FläktGroup Korea and the local government signed an investment agreement Wednesday for the facility at Samsung's Gwangju manufacturing complex. The new line will span 21,800 square meters, roughly the size of three soccer fields, and is scheduled to begin operations in early 2028.
The facility will manufacture coolant distribution units, or CDUs, a key component of liquid-cooling systems used in AI data centers, as well as fan wall units, computer room air handlers and air handling units.
Demand for liquid cooling has been rising as increasingly powerful AI servers generate more heat, putting pressure on conventional air-cooling systems. CDUs regulate the temperature and pressure of coolant circulating between a data center's chiller and cold plates attached to servers.
The Gwangju line will become FläktGroup's 15th production facility globally. The HVAC specialist currently operates 14 production sites and eight research centers across the United States, Europe and Asia, supplying equipment for data centers, industrial plants and commercial buildings.
The investment marks Samsung's first major expansion of production facilities at its Gwangju complex since the site was established in 1989. The plant currently produces appliances including refrigerators, washer-dryers and air conditioners.
Samsung plans to combine FläktGroup's central HVAC technology with its SmartThings Pro connectivity platform and building management systems as it expands sales to AI data centers and advanced manufacturing facilities.
"Samsung Electronics will rapidly expand HVAC as a future growth engine and seek to become a leading player in the global market," said Kim Cheol-gi, head of Samsung's Digital Appliances business. "The new Gwangju production line will provide an important foundation for strengthening our competitiveness in HVAC."
AJP Takeaways
- Samsung will invest 240 billion won in a new Gwangju HVAC production line scheduled to begin operations in early 2028.
- The facility will produce CDUs used in liquid cooling for AI data centers, turning Samsung's FläktGroup acquisition into additional manufacturing capacity in Korea.
- The investment extends Samsung's AI infrastructure push beyond semiconductors, targeting the rapidly growing cooling requirements of increasingly power-dense AI data centers.
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