External customers generated 51.1% of LG CNS revenue in the first half of this year — 1.4492 trillion won out of 2.8358 trillion won consolidated — marking the first time sales outside LG Group exceeded half of the total as the IT services firm repositions around AI infrastructure.

External sales grew more than 10% from about 1.3115 trillion won a year earlier, while related-party sales of 1.3866 trillion won (48.9%) held steady. AI and cloud drove the growth: first-half AI and cloud revenue rose 5.1% year-on-year to 1.6714 trillion won, or about 59% of total revenue. Full-year 2024 AI and cloud revenue increased 7% to 3.5872 trillion won.

What is LG CNS buying with 381.4 billion won?

This month LG CNS committed 381.4 billion won to acquire GPUs — including Nvidia's next-generation Vera Rubin — and related infrastructure, with completion scheduled by the end of June next year. The sum equals 7.2% of its consolidated assets of 5.2853 trillion won at the end of last year.

The strategy marks a break from the company's traditional systems-integration model: LG CNS will own the GPUs directly and link them to its data center design, build and operation (DBO) business and GPU services.

KB Securities analyst Kim Joon-seop wrote in a Sept. 14 report that the investment is "an upfront reference investment for future large-scale AI factory projects." He argued the key to expansion is not GPU count but whether LG CNS can repeatedly apply a proven deployment and operating model to other customers. Kim added that group demand for robotics, mobility and AI model development should support initial GPU utilization, and that own GPU services plus AI factory operations could shift the company toward a recurring revenue model.

How does LG Group fit in?

LG CNS has long used LG Group companies as early customers and testbeds. Two contracts signed this year with LG Electronics total 447.5 billion won:

• A 189.7 billion won physical AI infrastructure deal signed in July, supplying GPUs, storage and robot-training infrastructure for an LG Electronics robot data factory. It runs from August through July 2029.
• A 257.8 billion won contract signed Sept. 22 to supply Microsoft enterprise AI Copilot to LG Electronics from November through October 2031.

In the first half, LG CNS also ran manufacturing and logistics AI transformation projects for Doosan, the Korea Federation of SMEs, Kurly and LX Pantos, and expanded into pharmaceuticals, biotech, airports, aviation, defense and shipbuilding. Data center DBO orders exceeded 1 trillion won in the first half alone.\n

Where are the data centers going up?

LG CNS is deploying multiple ownership and operating structures:

• Samsong, with Naver Cloud: Next-generation liquid-cooling infrastructure at a data center with 80 MW total power capacity; LG CNS participates through operations and master leasing.
• Busan "AI Box": Modular AI data centers with 1.2 MW IT load each, housing up to 576 GPUs. A planned campus of 50 AI Boxes would reach a combined 60 MW.
• Incheon International Airport: A 40 MW AI data center within an aviation AI innovation hub. LG CNS holds a 33.22% consolidated stake in the project vehicle, Incheon Airport Aviation AI Innovation Hub PFV — an uncommon equity position in the project company itself.
• Jakarta, Indonesia: A 100 billion won facility with 30 MW power capacity, 46,281 square meters of gross floor area and room for more than 100,000 servers. The client plans to expand total capacity to 220 MW. LG CNS builds cooling, power and communications systems.

What happens to the 390 billion won M&A budget?

The company raised 599.7 billion won in its IPO last year and earmarked 390 billion won for mergers and acquisitions over three years. Through the first half, no large-scale deal has been executed.

With AI and cloud approaching 60% of sales, acquisitions tied to AI software, physical AI or data centers following the GPU investment could widen the business further. That unspent allocation now stands as the main open variable in LG CNS's second act.