South Korea Set to Enhance Cooling Equipment Exports for Data Centres Amid AI Surge
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Seoul, Dec 2 (NationPress) South Korea's industry minister declared on Monday that the nation intends to promote cooling equipment for data centres as a vital element of its new export strategy, driven by the increasing need for infrastructure to support the artificial intelligence (AI) surge.
Industry Minister Ahn Duk-geun made these comments during a visit to the chiller production facility of LG Electronics Inc. in Pyeongtaek, located approximately 60 kilometers south of Seoul, as reported by the Ministry of Trade, Industry and Energy.
Chillers are vital devices utilized in data centres to avert overheating by circulating water through a network of pipes, according to reports by the Yonhap news agency.
"In light of the rising popularity of generative AI platforms, such as ChatGPT, the energy requirements of data centres have surged significantly," stated LG Electronics, highlighting that chillers have become essential components of their infrastructure.
During the visit, Ahn emphasized that while South Korea has achieved consistent growth in export shipments for 14 consecutive months until November, there is a need to cultivate new export engines, particularly in AI-related products.
"Data centres serve as crucial infrastructure for the AI sector, and the ministry is backing AI chips, electronic devices, and cooling systems as next-generation export engines," Ahn remarked.
The minister also revealed that the government will allocate 350 billion won (approximately US$250 million) in trade insurance to bolster exports of cooling equipment and will provide additional support, including assistance in locating new buyers.
Forecasts indicate that South Korea's exports of cooling equipment, specifically for data centres, are expected to reach $2.6 billion in 2024, an increase from $2.4 billion in 2023, according to ministry data. From January to October this year, the total reached $2.2 billion.
Meanwhile, South Korea's exports have recorded annual gains for the 14th consecutive month in November, driven by robust semiconductor performance.
Outbound shipments grew by 1.4 percent year-on-year, reaching $56.3 billion last month, based on data compiled by the Ministry of Trade, Industry and Energy.
