[Edaily Reporter JAEMIN SONG ] LG Corp. is embarking on a collaboration with Microsoft (MS) that spans everything from artificial intelligence (AI) data center infrastructure to company-wide business innovation and physical AI. The plan is to combine LG Corp.’s cooling, power, and information technology (IT) capabilities with Microsoft’s AI and cloud infrastructure to expand business opportunities and accelerate the group-wide transition to AI.

LG Corp. announced on the 22nd that Koo Kwang-mo, CEO of LG Corp., and Satya Nadella, Chairman and CEO of Microsoft, held a senior executive meeting at Microsoft’s headquarters in Redmond, Washington, on the 21st (local time) and agreed to expand their strategic partnership.

The meeting was also attended by executives from major LG affiliates, including Kwon Bong-seok, Chief Operating Officer (COO) of LG Corp.; Ryu Jae-cheol, CEO of LGELECTRONICS; Hong Beom-sik, CEO of LG Uplus; Hyun Shin-kyun, CEO of LG CNS; and Jeong Su-heon, CEO of LG Science Park. LG plans to translate its collaboration with Microsoft into tangible business results based on the “One LG” system, which consolidates the group’s business capabilities.

The two companies agreed to strengthen cooperation in three areas: AI data center infrastructure, AI transformation, and physical AI.

First, the two companies will explore ways for LG Corp. to supply its cooling, power, and IT infrastructure solutions to Microsoft’s AI data center expansion projects around the world. In the short term, they plan to identify opportunities to supply high-capacity cooling solutions to AI data centers being built at key strategic locations.

LGELECTRONICS offers a full range of data center thermal management products, including chillers, cooling water distribution units (CDUs), and air conditioning systems. LGELECTRONICS explains that by integrating group-wide capabilities—such as LG Energy Solution’s energy storage systems (ESS) and LG CNS’s data center design, construction, and operation expertise—the group can provide a comprehensive solution spanning cooling, power, and IT infrastructure.

In the medium to long term, the companies plan to expand their collaboration to “prefab” data centers, where key equipment is manufactured in advance at a factory and then assembled on-site. This approach shortens construction time compared to traditional methods and allows for rapid expansion of facilities based on demand, making it well-suited to meet the surging demand for AI computing infrastructure.

LG Corp. is also transforming its internal work processes based on Microsoft’s AI and cloud technologies. LG Corp. is moving to roll out the “Microsoft 365 E7 Frontier Suite,” which includes Copilot, to its office workers worldwide. The company plans to boost productivity by applying AI to routine tasks such as document creation, information retrieval, and data analysis, while simultaneously building a work environment that comprehensively considers security, costs, and operational efficiency.

LG Corp.’s goal is not merely to deploy generative AI tools but to redefine how employees work with AI, thereby transforming the company into an “AI-native” enterprise.

The two companies will also expand their collaboration in the field of “Physical AI,” which involves integrating AI into actual industrial settings such as manufacturing, logistics, and mobility. LG Corp. plans to leverage Microsoft’s high-performance cloud infrastructure to accelerate the development and training of AI models operating in physical environments.

The two companies will also establish a “data flywheel,” in which data generated on the manufacturing floor is continuously collected and used to train AI models, and the improved models are then applied back to the factory floor. The goal is to create a virtuous cycle by connecting LG Corp.’s manufacturing sites and data to Microsoft’s cloud and AI platforms to continuously enhance model performance.

This partnership is the result of concrete discussions that began following a technology exhibition held at Microsoft’s headquarters last December. LG Corp. plans to consolidate the data centers, manufacturing, logistics, and IT capabilities currently scattered across its affiliates to secure business opportunities as Microsoft expands its global AI infrastructure, while also accelerating the group-wide AI transformation.