Samsung Electronics has finalized a new production facility in India for heating, ventilation, and air-conditioning (HVAC) systems utilized in data centers.
This is the initial production line established after Samsung's significant acquisition of the Europe-based air-conditioning company FläktGroup, and it signifies the firm's serious commitment to the business-to-business (B2B) data center cooling sector throughout the Asia-Pacific area.
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Samsung Electronics announced on the 13th that its subsidiary FläktGroup conducted a completion ceremony for the new production line in Pune, located in Maharashtra state, India, on the 12th local time. Approximately 100 individuals were present, comprising executives from both firms and representatives from key clients, including Kim Chul-ki, executive vice president and leader of Samsung Electronics' Digital Appliances (DA) division, along with FläktGroup CEO David Doni.
The plant in Pune spans 13,826 square meters. Equipment setup commenced at the beginning of this year, and operations launched only six months afterward. When the facility operates at full capacity, it can manufacture up to 6,500 air-conditioning units annually. The primary offerings include air-handling units (AHU) utilized in data centers and expansive commercial structures.
The facility also manufactures devices that focus on managing server temperature, such as fan wall units (FWU), which are blowers mounted on the walls of server rooms, and computer room air handlers (CRAH), which accurately regulate temperature and humidity.
The opening of the Pune facility marks Samsung Electronics' initial increase of a production site following the significant merger and acquisition aimed at expanding its air-conditioning operations. Samsung previously invested around 2.5 trillion won ($1.8 billion) to obtain full ownership of Germany's FläktGroup, known for its expertise in specialized cooling solutions for data centers and clean rooms in factories.
Pune, selected by Samsung for its new manufacturing base, is a crucial center where India's data center and advanced industrial infrastructure are growing the quickest. Situated close to the logistics center of Mumbai's port, it is seen as a key site that can enhance supply chain effectiveness, servicing not only India's internal market but also the whole Asia-Pacific area.
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Samsung Electronics is increasing its investment in B2B air-conditioning systems as the data center cooling infrastructure market is expanding quickly with the growth of the artificial intelligence (AI) sector. AI data centers, which handle immense data continuously, use substantial energy and produce considerable heat, necessitating effective thermal management technology.
Power used for server cooling currently represents up to 40 percent of a data center's overall operating expenses. The industry anticipates that the global market for data center air-conditioning will rise to approximately 62 trillion won by 2030.
Consistent with this, Samsung Electronics is rapidly expanding its air-conditioning supply chain both domestically and internationally. Having formed a joint venture with US-based Lennox to secure a North American distribution network, it has now launched an Asia-Pacific hub with its new plant in India.
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In South Korea, there is a push for widespread investment, which includes plans to establish a new air-conditioning facility at its Gwangju location and transform it into a primary manufacturing hub for the southwestern area. In the future, Samsung intends to integrate FläktGroup's hardware production technology with its AI-driven control platform to deliver full cooling solutions that enhance power efficiency in data centers.
"This completion of the Pune production line is an important milestone in expanding our air-conditioning equipment supply to the Asia-Pacific region," Kim says. "By combining Samsung's technology with FläktGroup's capabilities, we will provide optimal solutions to a wide range of customers."