LG Electronics has formed a strategic alliance with Saudi HVAC leader Shaker Group and global data infrastructure provider Datavolt to deliver next-generation cooling solutions for an artificial intelligence data center in Oxagon, part of Saudi Arabia’s $500 billion futuristic city, NEOM.
Datavolt, headquartered in Saudi Arabia with international offices across the US, Uzbekistan, India, and the UAE, is developing one of the region’s largest AI data centers in Oxagon, designed around renewable energy and sustainability.
As part of the partnership, LG CEO William Cho signed an MoU with Abdulelah Abunayyan, Chairman of Shaker Group, and Rajit Nanda, CEO of Datavolt. Under the agreement, LG will provide advanced thermal management solutions, integrating large-scale chillers and coolant distribution units for AI-ready, net-zero data centers.
Nanda emphasized that the collaboration is vital to enabling the Kingdom’s digital transformation, while Shaker Group CEO Mohammed Ibrahim Abunayyan highlighted the 30-year partnership with LG and its role in shaping the Saudi HVAC sector. He noted the new initiative further supports Saudi Arabia’s ambition to become a global technology hub.
LG is also advancing its “One LG Solution” strategy, leveraging group-wide expertise that may extend into battery solutions from LG Energy Solution and digital infrastructure offerings from LG CNS. Cho underlined that AI data center cooling is becoming a new growth engine for LG’s HVAC business, with added focus on heat recovery and DC power systems for improved efficiency.
During his visit, Cho assessed LG’s performance in Saudi Arabia, Nigeria, the Levant, and Maghreb, reinforcing the importance of tailoring strategies for the Global South. He noted the Middle East offers abundant B2G and B2B opportunities, driven by large-scale government-led projects.
This marks Cho’s third Global South trip this year, following India, Vietnam, and Indonesia. LG continues to introduce HVAC solutions adapted to the region’s climate, including sandstorm- and heat-resistant exchangers produced at the LG-Shaker facility, alongside expanded service infrastructure across the Middle East and Africa.
The partnership cements LG, Shaker, and Datavolt’s joint commitment to building sustainable, high-performance AI data centers, positioning Saudi Arabia as a leader in the global digital economy.
