LG Electronics to invest $110 mil. for chiller facilities in US, Korea
Summary
LG Electronics will invest 150 billion won to build a new chiller factory in Windsor, Virginia, and expand production lines in Korea to meet rising demand for AI data center cooling systems. The Virginia plant is set to start production in the first half of 2027. LG Electronics also plans equipment upgrades in Pyeongtaek and Changwon by year-end.
Key Facts
- The Virginia factory will cover 32,000 square meters on a 170,000-square-meter site and will make air-cooled chillers mainly for AI data centers.
- LG Electronics will add air-cooled chiller production lines and upgrade equipment at factories in Pyeongtaek, Gyeonggi Province, and Changwon, South Gyeongsang Province, by the end of this year.
- Omdia forecast global data center power requirements to rise from 226 gigawatts this year to 420 gigawatts in 2030, with 60 percent concentrated in North America.
An artist's impression of an artificial intelligence data center connected to LG Electronics' chillers and other high-end cooling solutions / Courtesy of LG Electronics
LG Electronics will invest 150 billion won ($110 million) to set up a new U.S. chiller factory and expand production lines in Korea to meet rising demand for artificial intelligence (AI) data center cooling systems, the company said Thursday.
The plant will be established in Windsor, Virginia, and is scheduled to begin production in the first half of 2027. It will have 32,000 square meters of floor space on a 170,000-square-meter site and manufacture air-cooled chillers primarily for AI data centers.
LG Electronics will also add air-cooled chiller production lines and upgrade equipment at its factories in Pyeongtaek, Gyeonggi Province, and Changwon, South Gyeongsang Province, by the end of this year. A single-conveyor system spanning all manufacturing stages will improve productivity and enable multiple lines to operate simultaneously.
North America hosts more than half of the world's AI data centers. According to market tracker Omdia, global data center power requirements are forecast to rise from 226 gigawatts this year to 420 gigawatts in 2030, with 60 percent concentrated in North America.
The Virginia factory will help shorten delivery times and stabilize supplies to major technology companies' data centers. The company plans further capacity expansion and equipment upgrades across its global production network.
Chillers produce large volumes of chilled water used for both air and liquid cooling. LG Electronics' chip-to-chiller portfolio includes chillers, coolant distribution units and cold plates that absorb heat directly from chips.
The company is also developing software and power infrastructure solutions to improve energy efficiency, aiming to reduce electricity consumption while increasing data processing capacity. High-density AI processors generate substantial heat, which can reduce their performance, making thermal management essential for reliable AI computing.
LG Electronics plans to strengthen ties with hyperscalers and major technology companies to expand its footprint in the North American cooling market.
In Asia, LG Electronics seeks to create synergy between its heating, ventilation and air conditioning businesses with LG Energy Solution's batteries and LG CNS' data center design, construction and operation capabilities. LG Group is supplying these solutions to a hyperscale AI data center being developed by Indonesia's Sinar Mas Group in Jakarta.
“We will continue to strengthen our ability to provide a stable supply of cooling solutions, which are core infrastructure for AI data centers, to actively address rapidly growing market demand,” said LG Electronics Eco Solution division President Lee Jae-seong.
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