Samsung Electronics is to acquire German HVAC specialist FläktGroup for €1.5 billion (A$2.48 billion) in a move aimed at strengthening its foothold in the fast-growing data centre cooling market amid surging demand driven by AI technologies.

The acquisition, Samsung’s largest since its $8 billion Harman deal in 2017, will see the South Korean company purchase FläktGroup from European private equity firm Triton. The deal is expected to close by the end of 2025.

FläktGroup, headquartered in Herne, Germany, specialises in high-efficiency heating, ventilation and air-conditioning (HVAC) systems for mission-critical environments including AI data centres, hospitals, airports and museums. It also offers advanced liquid and air cooling systems designed to meet the demands of hyperscale infrastructure.

“This deal lays the foundation for Samsung to lead in the global HVAC market,” said TM Roh, acting head of Samsung’s Device Experience division. “We’re committed to expanding this high-growth business as a key future growth engine.”

With AI applications like generative AI and autonomous vehicles driving up data centre workloads, efficient cooling has become essential to maintain performance and reliability.

Samsung cited market data projecting the applied HVAC segment to grow to US$99 billion by 2030, with data centre cooling expected to grow at 18% annually.

While the move supports Samsung’s consumer and commercial appliance division, some analysts believe the market had hoped for a bolder acquisition in the semiconductor space.

“This isn’t the game-changing chip deal some investors were expecting,” said Greg Roh of Hyundai Motor Securities.

The FläktGroup purchase continues Samsung’s recent expansion strategy, following last year’s HVAC joint venture with Lennox in North America and its increased stake in robotics firm Rainbow Robotics.

Shares in Samsung edged up 0.7% following the announcement.

Samsung says it plans to integrate FläktGroup’s technologies with its own building management systems.