LG and Microsoft expand AI data center partnership

LG and Microsoft have agreed to expand their AI partnership across data-center infrastructure, workplace AI and physical AI, turning earlier technical talks into a broader group-level framework.

The immediate commercial focus is Microsoft data centers. LG says the companies will explore opportunities for LG affiliates to supply cooling, power and IT infrastructure as Microsoft expands its global AI data-center footprint. The near-term discussions center on high-capacity cooling equipment, while the longer-term work includes prefabricated data centers that can be assembled and expanded faster.

This is not yet a supply contract. The Korea Herald notes that LG has not announced purchase orders, project sites, volumes or contract values. That caveat matters: the news is a strategic framework, not a confirmed equipment backlog.

The partnership also reaches inside LG. The group plans to use Microsoft AI and cloud products, including Copilot and Microsoft 365 E7: The Frontier Suite, across its global office workforce. For physical AI, LG plans to use Microsoft cloud infrastructure to train models for manufacturing, logistics and mobility, then feed industrial-site data back into model training.

The Microsoft agreement lands alongside LG’s broader infrastructure push with Nvidia. LG Electronics and LG Energy Solution were named to Nvidia’s DSX Ready program for cooling distribution units and battery energy storage systems, giving LG another route into the power and thermal layer around AI factories.