Samsung Electronics has completed a new HVAC manufacturing facility operated by FläktGroup in Pune, Maharashtra, adding production capacity aimed at the rapidly expanding AI infrastructure market. The facility gives Samsung a new manufacturing base for data center cooling equipment in India while extending FläktGroup’s ability to serve customers across the Asia-Pacific region. Its location near Mumbai and major logistics networks also gives the business a practical route to shorten equipment delivery timelines as data center developers face growing pressure to secure critical cooling infrastructure. The move signals that Samsung’s HVAC strategy is shifting beyond conventional building systems toward the higher-value cooling requirements emerging around AI compute.

The Pune plant represents the first new FläktGroup manufacturing facility to begin operations since Samsung Electronics completed its acquisition of the HVAC specialist in November 2025. That timing makes the facility an early test of how Samsung intends to combine FläktGroup’s established HVAC capabilities with its broader technology and global operating scale. Samsung held a completion ceremony at the facility on August 12, bringing together Cheolgi Kim, Executive Vice President and Head of Digital Appliance (DA) Business, FläktGroup CEO David Dorney, executives from both companies and representatives from major customers. More than 100 people attended the event, underlining the commercial importance Samsung places on the new manufacturing operation.

Pune plant targets AI data center cooling demand

The facility covers approximately 13,826 square meters across its production line, office space and auxiliary infrastructure. FläktGroup moved from equipment installation to mass production within six months, giving Samsung a relatively rapid route from acquisition integration to additional regional manufacturing capacity. The company plans to progressively increase output to as many as 6,500 HVAC units each year as production scales. That capacity matters because AI data centers are changing the economics of cooling, with higher compute density forcing operators to pay closer attention to airflow, thermal management and equipment efficiency.

Samsung and FläktGroup will manufacture several core product categories at the Pune facility, including Air Handling Units, Fan Wall Units and Computer Air Handlers. These systems address different parts of the thermal-management chain, allowing the plant to support data centers and other critical infrastructure rather than relying on a single cooling architecture. The portfolio gives FläktGroup a broader platform for serving facilities where conventional cooling approaches increasingly need to work alongside more precise thermal-management technologies. For Samsung, that product mix also creates an entry point into AI infrastructure spending that extends beyond chips, servers and consumer electronics.

Air Handling Units use chilled water to manage indoor temperatures while supporting air-quality requirements, making them a common component in large buildings and data centers. Fan Wall Units use multiple high-capacity fans to move heat away from server environments, creating a scalable airflow architecture for facilities with substantial thermal loads. Computer Air Handlers focus on tighter control of temperature, humidity and air quality around mission-critical IT equipment where operating conditions can directly affect system reliability. Together, these technologies position the Pune operation around the physical infrastructure that AI workloads increasingly depend on.

Samsung links AI technology with HVAC expertise

Cheolgi Kim, Executive Vice President and Head of Digital Appliance (DA) Business, said: “The completion of the production line in Pune, India, marks a significant milestone in expanding our HVAC supply beyond India to the broader Asia-Pacific region. By combining Samsung’s AI and platform technologies with FläktGroup’s HVAC expertise, we will deliver exceptional value to a diverse range of customers, including AI data centers,”

The statement points to a broader strategy than simply adding another manufacturing location. Samsung wants its AI capabilities and FläktGroup’s thermal-management expertise to operate as complementary assets as data center operators confront rising power densities and increasingly demanding cooling environments. That combination could give the company an opportunity to participate in the infrastructure layer surrounding AI growth, where cooling capacity can become a limiting factor alongside power availability and grid access. The strategy also places greater emphasis on regional manufacturing, which can reduce the distance between equipment production and rapidly developing data center markets.

The Pune facility also expands a manufacturing network that already includes FläktGroup operations in Greater Noida, Uttar Pradesh. Together, the two Indian locations give Samsung a larger domestic production footprint while supporting its ambition to build an HVAC business designed around India and the wider Asia-Pacific market. Meanwhile, a second manufacturing base can improve supply resilience as data center developers coordinate increasingly complex equipment requirements and construction schedules. The regional footprint also gives FläktGroup more flexibility to respond to customers without relying as heavily on longer international supply chains.

India becomes a strategic HVAC manufacturing base

The significance of the Pune investment extends beyond manufacturing volume because India is becoming an increasingly important market for digital infrastructure development. Data center operators, cloud providers and enterprises are expanding compute capacity, while AI workloads are pushing facilities toward higher rack densities and more demanding thermal environments. That combination creates an opportunity for cooling manufacturers that can provide equipment at scale while adapting their portfolios to increasingly specialized infrastructure requirements. Samsung’s decision to expand production in Pune therefore places its HVAC business closer to one of the regions where AI infrastructure investment is gathering momentum.

The plant also reflects a broader shift in how infrastructure suppliers are positioning themselves around the AI buildout. Companies that once competed primarily on individual mechanical or electrical components now have an incentive to connect those products to the wider requirements of high-density compute. For Samsung and FläktGroup, cooling provides a route into that market through equipment that sits directly between rising computational loads and the physical limits of data center environments. The Pune facility gives that strategy a physical foundation, rather than leaving the opportunity at the level of partnerships or product announcements.

FläktGroup’s Pune expansion raises the regional cooling stakes

FläktGroup’s planned production capacity of up to 6,500 HVAC units annually provides a measurable platform for expanding its presence across India and Asia-Pacific. The company can use Pune alongside Greater Noida to build a more localized supply model while Samsung brings additional scale, technology capabilities and international reach to the combined business. However, the long-term value of the investment will depend on how effectively the companies translate that manufacturing footprint into specialized solutions for high-density AI facilities and other critical infrastructure. The real opportunity lies not simply in producing more cooling equipment, but in building a supply chain capable of responding to the changing thermal profile of modern compute.

Samsung’s Pune move arrives as the AI infrastructure market increasingly treats cooling as a core capacity constraint rather than a supporting facility function. Higher-density computing makes thermal management inseparable from uptime, energy performance and the ability to operate increasingly powerful systems within constrained physical environments. By adding local production for AHUs, FWUs and CRAHs, Samsung and FläktGroup are positioning their combined HVAC business closer to those infrastructure decisions. The Pune facility therefore represents more than a new factory: it is an early marker of Samsung’s attempt to turn HVAC into a larger strategic pillar of its AI infrastructure ambitions.