LG Philippines targets data center cooling demand as AI lifts HVAC opportunity

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LG targets data center cooling growth

Highlights

LG Philippines is targeting growing HVAC demand from the local data center pipeline, anticipating a shift to commercial applications by 2025 or 2026.
Mordor Intelligence forecasts the Philippine data center market to expand from $850 million in 2026 to $2.37 billion in 2031, a 22.88% CAGR, driven by AI and cloud storage growth.
LG Electronics Philippines launched its HVAC Academy and Business Innovation Center in Pasig, planning at least four training sessions weekly and exploring government partnerships for workforce capability.

Data center pipeline shapes LG strategy

As reported by BusinessWorld Online, LG Philippines says it is positioning itself to capture demand for heating, ventilation, and air conditioning systems from local data centers as data storage requirements increase alongside AI expansion.

Ryan Cañete, the company’s commercial air conditioning sales team leader, says the HVAC market is currently concentrated in residential projects and ongoing construction. He adds that demand is expected to shift further toward commercial applications, including data centers, by next year or the year after.

Vanlee Budod, LG’s chiller sales part leader, says the local expansion of data centers is being driven mainly by the AI boom and the growing cloud storage requirements of enterprises. Mordor Intelligence projects the Philippine data center market will reach $2.37 billion in 2031, up from $850 million in 2026, implying a compound annual growth rate of 22.88%.

LG is also aiming to supply HVAC systems for data centers that may be built in Luzon under PAX SILICA, a U.S.-led technology initiative. The Philippine government said in August that no large AI or hyperscale data centers would be built within the project site, but Budod says the company is still preparing for potential opportunities.

New training center supports commercial push

LG Electronics Philippines has opened a new HVAC Academy and Business Innovation Center at Silver City in Pasig, creating a dedicated site where customers, partners, contractors and developers can explore the company’s business solutions.

Nakhyun Seong, managing director of LG Electronics Philippines, says in a statement that the facility is intended to bring technology and expertise closer to daily users. Budod says the center is expected to host at least four sessions per week through invitation-based or by-request arrangements.

LG is also considering partnerships with government agencies such as the Technical Education and Skills Development Authority by next year to provide HVAC training for Filipinos. The initiative supports the company’s effort to build technical capabilities as it targets larger commercial and industrial cooling projects in the Philippines.

In our earlier article, we covered calls from Philippine business groups to diversify the country’s growth drivers and build more self-sufficient industries through stronger local manufacturing and better use of domestic natural and aquatic resources. The report also highlighted pressure to accelerate structural reforms in areas such as health, education and investment policy, as growth projections place the Philippines among the slower-growing economies in developing Southeast Asia.

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