LG Electronics expands US and South Korea chiller production for AI data centres

by

Ansherina Baes

-

30 minutes ago

Singapore – LG Electronics is expanding its chiller manufacturing capacity for AI data centres (AIDCs), with a new production facility in the United States and expanded operations at two existing plants in South Korea.

The company is investing a total of KRW 150 billion across the new US facility and its production sites in Pyeongtaek and Changwon. 

The expansion is intended to increase supply capacity as demand for cooling systems grows alongside the expansion of AI data centre infrastructure.

The new air-cooled chiller facility in Windsor, Virginia, will cover 30,000 square metres of gross floor area on a 170,000-square-metre site. Production is scheduled to begin in the first half of 2027.

LG said the facility will produce air-cooled chillers for AIDCs and support supply to the North American market, where more than half of the world’s AIDCs are located. Virginia is also home to a significant concentration of data centres operated by major technology companies.

In South Korea, LG is expanding air-cooled chiller production lines at its Pyeongtaek and Changwon facilities. The company is introducing a conveyor-based production system designed for mass manufacturing, with products moving through the production process on a single conveyor.

Alongside its manufacturing expansion, LG is broadening its cooling portfolio for AI data centres through its Chip-to-Chiller strategy. The portfolio includes chillers, Coolant Distribution Units (CDUs) and cold plates designed to absorb heat directly from chips.

LG recently joined the NVIDIA Partner Network as a Power and Cooling Solution Preferred Partner. Its 2.6MW CDU has also qualified as an NVIDIA DSX Ready CDU and is categorised as a large-scale solution designed to manage the thermal loads generated by large AI server clusters.

Global data centre capacity is projected to increase from 226GW in 2026 to 420GW by 2030, according to Omdia. North America is expected to account for 60% of the additional capacity.

To address the cooling requirements associated with this expansion, LG is developing Direct-to-Chip liquid cooling systems that circulate coolant through cold plates, complementing its existing air-cooling technologies. 

The company is also combining cooling management systems, software and power infrastructure as part of its broader data centre offering.

LG is pursuing additional AI data centre projects in North America through relationships with hyperscalers and technology companies. 

In Asia, the company is combining its heating, ventilation and air conditioning capabilities with battery solutions and data centre design, construction and operational capabilities from other LG affiliates.

The company is also applying this approach to a hyperscale AI data centre project in Jakarta, Indonesia. In Singapore, LG has upgraded its Business Innovation Center as a hub where partners, engineers and system integrators can evaluate and develop data centre solutions.

“We will continue to strengthen our core capabilities in AI data centre cooling solutions, from differentiated product technologies to production capacity,” said James Lee, President of the LG ES Company. 

“With these capabilities, we will ensure a stable supply and actively address rapidly growing market demand,” Lee continued.

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