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Korea's next hot tech investment: Cooling

Published: 02 Dec. 2024, 16:51

LG Electronics, on Monday, shows a chiller. [YONHAP]

Korea's industry minister said Monday that the country plans to foster cooling equipment for data centers as one of its new export engines amid growing demand for infrastructure to support the AI boom.

Minister of Trade, Industry and Energy Ahn Duk-geun made the remark during his visit to LG Electronics' chiller production line in Pyeongtaek, Gyeonggi, according to the ministry.

Chillers circulate water through pipes to prevent overheating in data centers.

“Amid the growing popularity of generative AI platforms, including ChatGPT, energy consumption by data centers has risen sharply,” LG Electronics said in a statement, noting that chillers have also emerged as their key infrastructure.

During the visit, Ahn noted that while Korea maintained growth in outbound shipments for 14 straight months through November, the country needs to foster new export engines to sustain the momentum, citing AI-related products.

“Data centers are key infrastructure for the AI industry, and the ministry has been supporting AI chips, electronic equipment and cooling systems as next-generation export engines,” Ahn added.

The minister also stated that the government will provide 350 billion won ($250 million) in trade insurance for exports of such cooling equipment, in addition to offering other necessary support, including finding new buyers.

Korea's exports of cooling equipment, including those for data centers, are anticipated to reach $2.6 billion in 2024, up from $2.4 billion in 2023, the ministry said. Over the January-October period, the amount totaled $2.2 billion.

Yonhap