Samsung Electronics and LG Electronics are preparing for a head-to-head competition as they focus on expanding their presence in North America's rapidly growing heating, ventilation, and air conditioning (HVAC) market. This shift comes amid the surging demand for advanced data center cooling solutions driven by the proliferation of artificial intelligence (AI) infrastructure.
With the home appliance market slowing and facing intensified competition from lower-cost Chinese products, both South Korean companies have identified data center thermal management as a key area for business-to-business growth. The two firms are set to showcase their capabilities at AHR Expo 2026, North America's largest HVAC trade show, scheduled to take place in Las Vegas from February 2 for three days. This year's event is expected to emphasize energy efficiency and cutting-edge cooling technologies tailored to meet the needs of AI-centric data centers.
The expanding role of AI in technology has created what industry leaders are calling an "AI supercycle." High-performance graphics processing units (GPUs), essential for generative AI applications, consume significant amounts of electricity and generate intense heat, making effective cooling systems indispensable for modern data centers. Industry estimates suggest that cooling costs account for approximately 40 percent of data center operating expenses, underscoring the importance of efficient thermal management solutions.
This trend has further fueled growth in the North American HVAC sector, with market researchers projecting its value to increase from $51.61 billion in 2025 to $75.75 billion by 2032. Samsung and LG are positioning themselves as key players in this space, competing with other global HVAC leaders such as Trane and Carrier.
Samsung has embraced an aggressive growth strategy to expand its footprint in the North American HVAC market. The company has entered a joint venture with U.S.-based HVAC firm Lennox to establish a robust distribution network in the region. Additionally, Samsung completed the acquisition of Flakt, Europe’s largest HVAC company, late last year to strengthen its global reach.
At AHR Expo 2026, Samsung plans to spotlight its portfolio of high-efficiency hybrid products and energy-saving solutions integrated with its SmartThings AI platform, highlighting its commitment to innovation and sustainability.
In contrast, LG is leveraging its expertise in core HVAC components, including motors and compressors, to differentiate itself in the market. The company has established research centers in Alaska and Norway to develop high-efficiency heat pump systems designed to operate in extreme climates. LG is also recognized for its strong capabilities in chillers, a critical technology for data center cooling.
LG has reportedly engaged in discussions with major technology firms, including Microsoft, to supply cooling systems for data centers. While strengthening its presence in North America, LG is also expanding into other regions, including the Middle East and the Global South, according to industry insiders.
Analysts believe 2026 could represent a turning point for Samsung and LG as both companies transition from their traditional consumer-focused roles to broader positions as energy solution providers. The competition between the two South Korean tech giants is expected to intensify as they vie for dominance in the lucrative and rapidly expanding market for data center cooling solutions.
