LG Electronics Expands AI Data Center Cooling Production in US and Korea

LG Electronics plans to invest 150 billion won, or about $110 million, in new and expanded chiller production capacity in the United States and South Korea, positioning its cooling business for rising demand from artificial intelligence data centers.

The company said its new US facility will be located in Windsor, Virginia, and is scheduled to begin production in the first half of 2027. The plant will have 32,000 square meters of floor space on a 170,000-square-meter site. It will primarily produce air-cooled chillers for AI data centers.

Building in Virginia will put LG closer to major North American data center customers. The company expects the location to shorten delivery times and make its supply network more reliable as operators add computing capacity and seek equipment capable of managing the intense heat generated by AI servers.

The expansion reflects the growing commercial importance of cooling in the AI infrastructure market. Market researcher Omdia estimates that the power capacity required by data centers worldwide will increase from 226 gigawatts in 2026 to 420 gigawatts by 2030. North America is expected to account for about 60 percent of that demand.

LG is also increasing capacity at home. It will add air-cooled chiller production lines at its Pyeongtaek plant in Gyeonggi Province and its Changwon plant in South Gyeongsang Province, while upgrading existing equipment. The company plans to introduce a flow-line manufacturing system and operate multiple lines simultaneously by the end of this year.

The investment is part of a broader effort to build what LG calls a chip-to-chiller portfolio. That range covers cooling equipment from cold plates that draw heat directly from individual chips and coolant distribution units to large-scale chillers serving entire facilities. Offering systems at several levels could allow LG to compete for a larger share of spending on increasingly complex data center thermal management.

LG is already pursuing integrated projects elsewhere in Asia. It is supplying cooling technology for a hyperscale AI data center under construction in Jakarta by Indonesia’s Sinar Mas Group. That project combines LG Electronics’ heating, ventilation and air conditioning equipment with battery systems from LG Energy Solution and data center expertise from LG CNS.

Lee Jae-sung, head of LG Electronics’ Eco Solution business, said the company would continue strengthening its ability to provide a stable supply of cooling solutions, describing them as essential infrastructure for AI data centers. The Virginia plant and Korean production upgrades give LG additional capacity on both sides of the Pacific as it seeks to turn the AI investment boom into growth for its business-to-business operations.