LG Electronics to build $64m data center chiller plant in Virginia

LG Electronics is expanding its global manufacturing capacity for data center chillers to meet the rising demand driven by artificial intelligence infrastructure. The company plans to build a new 350,000-square-foot state-of-the-art facility in Isle of Wight County, Virginia. This $64 million investment is part of a broader plan to invest over $110 million across the new U.S. site and existing factories in Pyeongtaek and Changwon, South Korea.

The Virginia plant is scheduled to begin production in the first half of 2027. It will serve as a strategic base to provide a responsive supply of air-cooled chillers and other HVAC solutions to the North American market.

In addition to the U.S. expansion, LG is increasing production lines in South Korea by adopting conveyor-based systems designed for mass production and improved operational efficiency. The company aims to position itself as a comprehensive provider of cooling technologies, ranging from direct-to-chip liquid cooling to large-scale chiller systems for AI-driven data centers.