Samsung's $1.7 Billion Cooling Spree - Buys FläktGroup To Target Data Center Boom

On Wednesday, Samsung Electronics Co SSNLF disclosed a 1.5 billion euros ($1.7 billion) deal to purchase all shares of FläktGroup, a major worldwide supplier of HVAC systems, from the European investment company Triton.

Based in Herne, Germany, FläktGroup offers over a century of HVAC tech and design expertise, providing tailored, reliable, and efficient systems for diverse facilities, such as data centers (stable cooling), museums/libraries (sensitive artifacts), airports (high traffic), and hospitals (critical environmental control).

FläktGroup has strong data center customer satisfaction and revenue growth (past 3 years) due to product performance, reliability, and service, offering leading liquid/air cooling that helps reduce energy consumption and carbon footprint.

The transaction is expected to close in 2025. Samsung expects the acquisition to capitalize on sustained data center demand driven by the growth of generative AI, robotics, autonomous driving, XR, and other advanced technologies.

Furthermore, the integration of Samsung's b.IoT building control solution and FläktGroup's FläktEdge HVAC control system is projected to create a comprehensive suite for HVAC and building energy management, which the company anticipates will lead to an expansion of its service and maintenance business.

Notably, Market research suggests the applied HVAC market will grow from $61 billion in 2024 to $99 billion by 2030 (8% annual growth), with data center cooling growing even faster at 18% annually.

Yesterday, Samsung launched the Galaxy S25 Edge, a 5.8 mm-thin, 163-gram smartphone, just four months after unveiling the rest of the S25 series.

In April, the company reported first-quarter revenue growth of 10% year-on-year to 79.1 trillion Korean won ($55.5 billion).

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