Samsung Disbursed 240 Billion Won, Built AI Data Center Cooling Facilities

JAKARTA – Samsung Electronics is pouring 240 billion won or about 170 million US dollars to build a production facility for artificial intelligence or AI data center cooling systems in Gwangju, South Korea. The facility is targeted to start operating in early 2028.

Korea JoongAng Daily, quoted Wednesday, August 19, reported that the facility for the heating, ventilation, and air conditioning system or HVAC will be built on the third campus of Samsung’s complex in Gwangju, Buk District. Its area reaches 21,800 square meters or approximately equivalent to three football fields.

The investment is Samsung’s first major production facility development in the Gwangju complex in 37 years. Samsung opened the complex in 1989 as a production base for home appliances.

The new line will take Samsung’s business further away from household air conditioners. The company plans to expand the business into centralized HVAC systems that regulate temperature and energy use in data centers, factories, and large buildings.

The move follows Samsung’s acquisition of German HVAC specialist FläktGroup last year. The Gwangju facility will be FläktGroup’s 15th manufacturing facility in the world.

The main product to be made is a coolant distribution unit or CDU for AI data centers. This device regulates the temperature and pressure of the coolant before it is circulated to the server cooling system. The liquid then carries heat out of the server.

AI data centers generate massive heat because they run many high-performance chips at once. Reliable cooling systems are needed to maintain server performance and energy efficiency.

Cooling using liquids is also becoming increasingly important as conventional air cooling systems are beginning to face limitations in handling AI servers that generate high heat.

Samsung also plans to produce fan wall units and computer room air handling units for data center air cooling, as well as air handling units for large buildings.

The company will use liquid and air cooling systems to target AI data centers as well as advanced manufacturing facilities in South Korea and overseas markets.

Samsung will also integrate FläktGroup’s HVAC technology with its platform to connect and control heating and cooling devices throughout the building.

The company is targeting an integrated system that can manage HVAC equipment as well as the overall energy use of the building.

Samsung wants to make its HVAC business a new source of growth and aims to enter the ranks of global top companies in the sector by 2030.

“This new production line investment in Korea will be a strong foundation to achieve this goal,” said Samsung Electronics Executive Vice President and Head of Digital Equipment Business Kim Cheol-gi, quoted by Korea JoongAng Daily.

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