LG Electronics is expanding its global chiller capacity, building a new plant in the United States and adding production lines in South Korea. The goal is to capture more of the fast-growing market for AI data center cooling.
The company said Thursday that it will build a chiller plant in Windsor, Virginia, with production targeted for the first half of next year. The facility will have a total floor area of 32,000 square meters on a 170,000-square-meter site. It will produce air-cooled chillers, which are mainly supplied to AI data centers.
Chillers produce large volumes of chilled water and are used for heating, ventilation and air conditioning (HVAC) in large buildings, commercial facilities, factories and data centers. The chilled water supports everything from air cooling to liquid cooling in data centers, which makes chillers a core piece of cooling infrastructure.
LG plans to use the new U.S. plant to meet surging demand for data center chillers in North America. The region hosts more than half of the world's AI data centers. According to research firm Omdia, global data center power capacity is expected to grow from 226 gigawatts (GW) this year to 420 GW by 2030, with 60% of that concentrated in North America.
LG will also set up new air-cooled chiller lines at its Pyeongtaek and Changwon plants in South Korea and upgrade the equipment there. The new lines use a “flow line” system, in which a single conveyor carries each unit from the first process to the last. This is meant to raise productivity and keep pace with demand. The company will phase in the domestic lines by the end of this year, so that multiple lines can run at the same time.
The combined investment in the U.S. plant and the domestic expansion is about 150 billion KRW. LG said it will keep expanding capacity by adding production lines and upgrading equipment at its global manufacturing sites.
LG already offers what it calls a “Chip to Chiller” portfolio, covering the key components of data center thermal management. It includes chillers, coolant distribution units (CDUs) and cold plates, which sit directly on heat-generating chips to absorb their heat. The company is moving quickly to grow this business. Beyond cooling hardware, it is also strengthening software to improve energy efficiency, along with power infrastructure solutions.
In North America, LG plans to pair its differentiated cooling products, such as chillers and CDUs, with deeper ties to hyperscale data center operators and Big Tech companies. It aims to win projects faster.
In Asia, LG is using its experience and track record on AI data center projects under its “One LG” approach to reach more customers and strengthen its regional HVAC business. For example, it is supplying One LG solutions to a hyperscale AI data center that Indonesian conglomerate Sinar Mas Group is building in Jakarta. Alongside its HVAC technology, LG is offering battery solutions from LG Energy Solution and the design, build and operation (DBO) capabilities of LG CNS, widening its business opportunities.
“We will keep strengthening our ability to deliver reliable supply in cooling, a core part of AI data center infrastructure, and aggressively pursue the rapidly growing demand,” said Lee Jae-sung, president of LG Electronics' ES Company.
