LG Electronics secures North American AI data center cooling deal

LG Electronics has signed a long-term supply agreement (LTA) with AIR Control Concepts to provide cooling solutions for artificial intelligence (AI) data center projects in North America exceeding 5 gigawatts (GW) of capacity. The agreement involves the sequential supply of high-efficiency chillers and other thermal management equipment to support data center infrastructure in the United States and Canada.

To meet rising demand, LG Electronics is investing approximately 150 billion KRW (about 110 million USD) to expand its manufacturing capabilities. This includes a new air-cooled chiller production facility in Windsor, Virginia, scheduled to begin operations in the first half of 2027, as well as capacity expansions at existing plants in Pyeongtaek and Changwon, South Korea.

The company is pursuing a ‘Chip-to-Chiller’ strategy, offering a portfolio that includes chillers, Coolant Distribution Units (CDUs), and cold plates to manage heat directly from chips. This approach addresses the shift from traditional air-cooling to liquid-cooling methods necessitated by the high power density of AI-driven hardware.