LG Electronics secures North American AI data center cooling deal
Don Kwack, back row left, CEO of LG Electronics North America; James Lee, back row second from left, president of the LG Electronics ES Company; Chris Ahn, front row left, LGEUS Eco Solution Division leader; and Hayden Bland, front row right, president of AIR Control Concepts, pose after signing an agreement to supply advanced chillers for data centers in the United States and Canada in this undated photo. Courtesy of LG Electronics
Partnership with AIR to support more than 5GW of AI data center capacity
LG Electronics has signed a long-term supply agreement with AIR Control Concepts, a global platform for companies specializing in heating, ventilation and air conditioning (HVAC), electrical, service and controls, to provide advanced chillers for data centers in the United States and Canada, the company said Monday.
The deal covers large-scale artificial intelligence (AI) data center projects with a combined capacity of more than 5 gigawatts in North America, strengthening LG's position in the rapidly growing AI data center cooling market.
AIR oversees large-scale infrastructure projects across major North American data center hubs and serves leading global data center operators.
Under the agreement, LG will supply advanced chillers for AIR's data center projects. Its Air-Cooled Centrifugal Chiller for AI data centers incorporates refrigerant-free cooling technology that uses outdoor air to reduce the cooling load on compressors.
According to LG's internal simulations, refrigerant-free cooling can consume about 30 percent less energy annually than waterside free cooling.
LG said the agreement reflects AIR's confidence in its cooling technology and reliability for hyperscale data center projects. The partnership also goes beyond individual project bids, positioning LG as a key cooling infrastructure supplier for AIR's growing AI data center portfolio.
LG is expanding its data center cooling business globally as demand for thermal management systems grows alongside the rapid expansion of AI infrastructure.
The company has six decades of HVAC engineering experience in high-reliability facilities, including nuclear power plants and large hospitals. It has recently supplied cooling solutions to hyperscale data centers in North America and is pursuing data center projects in the Middle East and Indonesia.
LG is also leveraging the broader LG Group's capabilities to provide integrated cooling solutions as it seeks to expand its data center business over the medium to long term.
The global AI data center market is expected to grow at an annual rate of about 26 percent to reach $133.5 billion by 2034, according to Fortune Business Insights.
LG said in its second-quarter 2026 earnings report that orders for data center cooling solutions totaled more than $428 million in the first half of the year. The company expects to reach its 2027 chiller business revenue target of about $680 million ahead of schedule.
“As heat management in AI data centers emerges as a major global priority, LG aims to be a major player in the global AIDC cooling market,” said James Lee, president of the LG Electronics ES Company. “We will achieve this through our differentiated technology, including our high-efficiency chillers, and our rapidly expanding experience in supplying leading big tech companies.”
Brad Hobbs, chief executive officer of AIR Control Concepts, said, “LG’s high-efficiency chiller technology gives us a proven platform we can deploy with confidence across our AI data center portfolio.”