Samsung Climate Control's stock soars amid growing demands for data center cooling devices

By Kim Joo-heon Posted : June 5, 2024, 14:17 Updated : June 5, 2024, 14:17
This undated photo shows a data center
This undated photo shows a data center. Getty Images Bank
SEOUL, June 5 (AJU PRESS) - Samsung Climate Control's stock price has soared amid growing demand for cooling devices for data centers, driven by the ongoing artificial intelligence (AI) boom.

The company's shares closed at 14,990 won ($10.94) on Tuesday, marking a 22.82 percent increase from the previous day's close. The car parts unit of the tech giant Samsung specializes in HVAC (heating, ventilation, and air conditioning) technology.

Data centers, the backbone of AI operations, consume vast amounts of power, which generates substantial heat, making HVAC systems critical to prevent facility overloads and reduce energy consumption.

According to market research firm IBIS World, the global HVAC market is projected to grow to $61 billion by 2028 from $58.4 billion in 2023.

In a related move, Samsung Electronics is collaborating with American HVAC company Lennox to establish a joint venture, aiming to strengthen its presence in the North American HVAC market.

As of the first quarter of 2024, the number of data centers in North America stood at 5,350, accounting for about 45 percent of the world's total 11,800 data centers.

After a media outlet reported that LG Electronics would supply its HVAC systems to large data centers in the U.S., its stock also recently surged by 13.4 percent.
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