Samsung bets on data center HVAC with $1.7 bn FläktGroup acquisition
Jeong-Soo Hwang
6 HOURS AGO
In 2024, Samsung reportedly vied for the HVAC operations of Johnson Controls International Samsung Electronics Co. on Wednesday announced the acquisition of FläktGroup, a German manufacturer of heating, ventilation and air conditioning (HVAC) systems, for 1.5 billion euros ($1.7 billion), betting on the growing demand for climate control solutions in data centers.
The South Korean semiconductor and consumer electronics giant has signed an agreement to buy all shares of FläktGroup, Europe’s largest HVAC system supplier, from European investment firm Triton.
It represents Samsung’s largest mergers and acquisition deal since its $8 billion purchase of Harman International Industries Inc., a US-based audio and automotive electronics maker, in 2017.
“In its acquisition of FläktGroup, Samsung anticipates sustained growth in data center demand due to the proliferation of generative AI, robotics, autonomous driving, XR and other technologies,” it said in a press release.
The data center cooling market is projected to expand at double digits annually through 2030 due to high entry barriers, outstripping the overall applied HVAC market, which is expected to see a single-digit growth during the same period, according to Samsung.
FläktGroup logo (Courtesy of Samsung Electronics) “Through the acquisition of FläktGroup, an applied HVAC specialist, Samsung Electronics has laid the foundation to become a leader in the global HVAC business, offering a full range of solutions to our customers,” said TM Roh, acting head of the Device eXperience (DX) division at Samsung Electronics.
“Our commitment is to continue investing in and developing the high-growth HVAC business as a key future growth engine,” he added in the press release.
FläktGroup supplies HVAC systems to a wide range of buildings and facilities, including data centers, museums, libraries, airports and terminals as well as hospitals. The company’s sales were estimated at 650 million euros in 2022.
GROWTH IN DATA CENTER HVAC MARKET
In the large-scale data center market globally, FläktGroup has achieved substantial revenue growth over the past three years, said Samsung.
Its HVAC systems catering to data centers include liquid cooling and air cooling products optimized to reduce energy consumption.
FläktGroup was formed through the merger of Fläkt Woods, a Swedish company, and Germany-based GEA Group’s heat exchanger business, both of which Triton acquired in 2014.
Samsung premiers its HVAC products at ISH 2025, a trade fair for HVAC + Water products, in Frankfurt, Germany in March “FläktGroup, as a global top-tier HVAC specialist with over a century of expertise, has been relied on by global large clients for its technological and product innovations,” Trevor Young, CEO of FläktGroup, said in the press release. “Now, with Samsung Electronics’ global business foundation and investment, we expect to further accelerate our growth.”
In addition to data centers, FläktGroup has secured a diverse portfolio of over 60 large customers, including leading pharmaceutical companies, biotech and food and beverage firms and gigafactories.
BID FOR JOHNSON CONTROLS' HVAC OPERATIONS
The HVAC market is emerging as a battleground for home electronics companies, including LG Electronics Inc. LG ranks among the world's top five suppliers in the sector, ahead of Samsung.
Robert Bosch has outbid rivals and agreed to buy the assets from Johnson Controls and Hitachi for $8.1 billion in its largest-ever deal.
Samsung premiers its HVAC products at ISH 2025, a trade fair for HVAC + Water products, in Frankfurt, Germany in March Samsung said the HVAC industry is expected to continue growing with demand for innovative and energy-efficient solutions that improve air quality and control temperature and humidity.
The applied HVAC market is projected to grow from $61 billion in 2024 to $99 billion by 2030, at an annual growth rate of 8%, said Samsung, citing some market research forecasts.
In particular, the data center cooling market is expected to expand at an annual growth rate of 18%.
Samsung has been expanding its HVAC business with a focus on ductless systems, which supply general and system air conditioners to residential and commercial buildings.