Samsung Begins Work on $173 Million HVAC Production Line in Gwangju
Samsung Electronics has broken ground on a new HVAC production line in Gwangju, investing about 240 billion won as it expands its capacity for advanced cooling systems amid growing demand from AI data centers.
Samsung Electronics has broken ground on a new heating, ventilation and air conditioning production line in Gwangju, marking a significant expansion of a business the company sees as a future growth engine.
The Korean technology company held a groundbreaking ceremony in the southwestern city on Monday. It plans to invest about 240 billion won, equivalent to approximately $173 million, in the facility at its existing Gwangju operations site.
The production line will cover 21,500 square meters and is scheduled to begin operations in 2028. Once completed, it will manufacture products developed by FlaktGroup Holding, the Germany-based ventilation specialist that Samsung acquired last year.
The project links Samsung’s domestic manufacturing base with the industrial cooling capabilities it gained through the acquisition. Samsung said the line will strengthen its global production capacity for advanced cooling equipment and centralized HVAC solutions.
Demand for those systems is increasing as companies build more artificial intelligence data centers. Such facilities require large-scale, reliable cooling infrastructure to manage the heat generated by dense computing equipment. That trend is creating a growing market for specialized systems that can operate efficiently at data-center scale.
Roh Tae-moon, Samsung Electronics’ co-chief executive and head of its Device Experience division, described the new FlaktGroup line as another milestone in the development of the company’s HVAC operations. He identified HVAC as a key growth driver for Samsung.
The investment also gives the Gwangju site a larger role in Samsung’s push beyond its established consumer electronics businesses. By adding production for centralized and advanced cooling equipment, the company is building capacity in an area tied closely to the continuing expansion of AI infrastructure.
The new line is not expected to start production immediately, with operations planned for 2028. However, the groundbreaking establishes a timetable and investment scale for Samsung’s effort to turn the FlaktGroup acquisition into added manufacturing capacity in Korea.
For Samsung, the project combines a major domestic factory investment with a broader international HVAC strategy. The Gwangju facility will serve as a production base for technology from the acquired German company while helping Samsung respond to rapidly rising global demand for data-center cooling solutions.