South Korean billionaire Jay Y. Lee's Samsung eyes $5.6 billion US data centre cooling acquisition

Samsung Electronics, led by South Korean billionaire Jay Y. Lee, is in talks to acquire US industrial cooling company Modine Manufacturing, in a potential deal that would deepen its exposure to the infrastructure supporting the global artificial intelligence boom.

The discussions could produce an agreement within weeks, according to a November 13 report by Bloomberg, which cited people familiar with the matter. Modine had a market value of about $5.6 billion at Thursday's close, before its shares jumped sharply following news of the negotiations.

The potential acquisition would give Samsung access to a fast-growing supplier of cooling systems used in large data centres, where powerful processors generate substantial heat and require increasingly sophisticated thermal-management equipment.

Reuters reported that the discussions remain uncertain. No final decision has been made, the talks could collapse and another bidder could emerge. Samsung and Modine did not immediately respond to requests for comment.

Modine, based in Racine, Wisconsin, makes heating and cooling equipment for commercial buildings and industrial applications. Its data-centre business has become an important growth driver as technology companies and cloud providers expand their computing capacity to support artificial intelligence services.

The company has been repositioning itself around thermal-management products. In October, it separated its automotive business, allowing it to concentrate more closely on heating and cooling solutions for industrial customers and data-centre operators.

The acquisition would build on Samsung's existing efforts to expand its data-centre cooling business. The South Korean electronics group purchased German thermal-management company FläktGroup for €1.5 billion in 2025, adding expertise in air and liquid cooling systems.

A purchase of Modine would represent a significantly larger move into the sector and give Samsung a stronger position in the supply chain serving hyperscale data centres.

The market opportunity has grown as artificial intelligence developers invest heavily in servers, advanced chips and the facilities needed to run them. Cooling has become a critical part of that infrastructure because increasingly dense computing systems require more efficient ways to manage heat and energy consumption.

Samsung already operates across semiconductors, memory chips, smartphones and other electronics. Expanding into data-centre infrastructure would allow the company to benefit from the AI boom beyond the sale of processors and memory products.

The talks also come as competition intensifies among companies seeking to supply the physical infrastructure behind AI. Samsung faces rivals including LG Electronics, Daikin Industries and US-based Vertiv, all of which have businesses connected to data-centre cooling and thermal management.

For Lee, the potential transaction would extend Samsung's strategy of using acquisitions to strengthen businesses positioned for long-term technology demand. The company has been increasing its exposure to artificial intelligence through semiconductor manufacturing and infrastructure investments.

Billionaires.Africa previously reported on Lee's Samsung investment in a $900 million AI chip packaging facility, another example of the group's push to capture more value from the expanding AI industry.

A deal for Modine would take that strategy further, placing Samsung more directly in the business of building and maintaining the facilities that power artificial intelligence.