Dive Brief:
- LG Electronics has entered into a long-term agreement with AIR Controls Concepts to supply chillers to AI data centers in North America with more than 5 gigawatts of capacity, the companies announced Monday.
- AIR is involved with mega-scale infrastructure projects across major North American data center hubs. LG will provide data centers its air-cooled centrifugal chiller, which uses cool outdoor air to lower compressor load without the need for refrigerant. LG says this refrigerant-free cooling can reduce energy use by 30% annually compared to waterside free-cooling, which is another type of technology that uses cold outside air to supplement the mechanical chiller.
- The agreement comes after LG joined Virginia Gov. Abigail Spanberger to announce it will build its first U.S. chiller factory in the state to meet rising chiller needs across North America. “This factory represents an important step in LG Electronics’ strategy to expand production capacity for advanced cooling technologies and better serve the rapidly expanding customer base in North America,” Don Kwack, CEO of LG Electronics North America, said in an Oct. 1 release.
Dive Insight:
LG’s data center cooling orders accounted for $428 million in the first half of 2026, according to the release. It expects orders to reach several billion dollars by the end of the year,
and that it will achieve its 2027 chiller business revenue target of $680 million ahead of schedule.
“As heat management in AI data centers emerges as a major global priority, LG aims to be a major player in the global AIDC cooling market,” said James Lee, President of the LG Electronics Eco Solution Company.
Alongside its manufacturing announcement, LG unveiled its global chip-to-chiller solution strategy, which includes its chillers, coolant distribution units and cold plates that absorb heat directly from chips. To address demand, the company is offering a direct-to-chip liquid cooling solution that it says can complement its air-cooling offerings.
The manufacturer’s 350,000-square-foot facility will address the growing need for cooling solutions in data centers and also support the company’s other HVAC solutions, which offers U.S. customers a portfolio of heating, ventilation, air conditioning and water heating products and building controls, said Chris Ahn, president of LG Electronics USA’s air conditioning technology division.
North America has more than half of the world’s AI data centers, or AIDCs, and Virginia is the largest data center market in the U.S. As AIDCs become critical infrastructure for large-scale data processing and high-performance computing, their ability to operate without interruption depends on heat management and high-performance cooling solutions, including chillers, Ahn said.
AIR Control Concepts is made up of over 50 operating companies, including Advanced Thermal Solutions, Air Mission Critical, Buildings Controls and Services, Dorse, Energy Transfer Solutions and ThermAir Systems.
“Data center cooling represents a key pillar of LG’s global growth strategy, and this major supply agreement with AIR marks an inflection point for LG’s North American chiller business,” said Kwack. “This alliance leverages LG’s proven cooling innovations and AIR’s strong position with U.S. data center developers at a critical time for reliable AI infrastructure expansion.”
