The Pulse
LG and Microsoft Expand AI Infrastructure Partnership
LG and Microsoft are broadening cooperation across AI data centers, physical AI and enterprise AI tools. Verification note: the fetched ET News article was checked for an attributable speaker quotation, but none appears in the text.
AI.info Team ·
LG Group Chairman Koo Kwang-mo and Microsoft CEO Satya Nadella met at Microsoft’s headquarters in Redmond, Washington, and agreed to expand cooperation across AI infrastructure, physical AI and AI transformation.
LG said on September 22 that Koo and Nadella held the meeting and signed a strategic partnership. Leaders from major LG affiliates joined Koo, and the group also held a top management meeting focused on coordinating its AI capabilities and increasing business cooperation with Microsoft.
The partnership covers three main areas. In AI infrastructure, LG plans to supply cooling, power and information-technology solutions to support Microsoft’s data-center expansion. The companies also plan to introduce large-scale cooling solutions at major AI data-center sites and are pursuing cooperation in prefabricated data centers, where modules are produced in advance and assembled at the site.
AI Infrastructure Cooperation
The agreement gives LG an opportunity to bring several industrial capabilities into Microsoft’s AI infrastructure activities. The ET News report identifies cooling, power and IT solutions as areas of planned supply, but it does not name a specific Microsoft facility, purchase order or deployment schedule.
The companies are also considering prefabricated data centers. Under that approach, equipment or facility modules can be prepared before being assembled at a project site, supporting faster expansion of AI infrastructure. The report describes the area as a field in which the two companies intend to broaden cooperation, rather than announcing a confirmed project.
Physical AI for Manufacturing and Mobility
LG and Microsoft will accelerate cooperation on physical AI for manufacturing, logistics and mobility. LG plans to use Microsoft’s high-performance cloud infrastructure to develop and train models for real-world environments.
The companies also plan to use their infrastructure and platforms to build a “data flywheel” that links the accumulation of manufacturing-site data with model training. LG says this approach will support the development of physical AI capabilities by combining Microsoft’s cloud and AI resources with LG’s manufacturing and operational data.
The Redmond meeting included executives from LG Electronics, LG Uplus, LG CNS and LG Sciencepark. The participation of several affiliates reflects a group-level effort to coordinate LG’s AI capabilities while working with Microsoft.
Microsoft AI Tools for LG Employees
LG also plans to expand its use of Microsoft’s AI and cloud platforms. The company intends to introduce Copilot and other Microsoft AI and cloud tools for office workers across the group as part of its effort to establish AI-based ways of working.
LG said the program will involve more than simply adopting AI tools. It plans to design working environments around security, cost and operational requirements, with the aim of establishing common practices for using AI in daily work.
The partnership follows earlier discussions between LG executives and Nadella in December 2025. ET News also reported that Koo met Nvidia CEO Jensen Huang in the United States the previous month to discuss cooperation in robotics, AI factories and mobility.
LG’s agreement with Microsoft sets a broad framework for cooperation across infrastructure, software and physical AI. The ET News report does not disclose a named Microsoft data-center project or a confirmed infrastructure contract. It instead describes planned cooperation and LG’s intention to combine the capabilities of its affiliates with Microsoft’s cloud and AI platforms.