LG Electronics is stepping up its push into the rapidly growing AI data center cooling market by expanding production capacity in the United States and South Korea.
The company said on October 1 that it will build a chiller manufacturing plant in Windsor, Virginia, with production scheduled to begin in the first half of next year. The facility will cover approximately 32,000 square meters of floor space on a 170,000-square-meter site and will primarily produce air-cooled chillers for AI data centers.
The investment is aimed at establishing a local supply base closer to North American data center customers. Virginia, known as a major U.S. data center hub, has attracted large-scale facilities operated by major technology companies, making the region an important market for cooling equipment.
Demand for cooling systems is rising alongside the expansion of AI data centers. High-performance GPUs and CPUs generate significantly more heat than conventional data center equipment, making efficient and stable thermal management increasingly important. According to Omdia, global data center power capacity is expected to rise from 226 gigawatts this year to 420GW by 2030, with North America accounting for about 60% of the total.
LG Electronics is also expanding its domestic production infrastructure. The company plans to add air-cooled chiller production lines and upgrade manufacturing equipment at its plants in Pyeongtaek and Changwon.
Total investment in the new U.S. facility and the expansion and modernization of production lines in Korea is expected to reach approximately 150 billion won ($110 million).
Industry observers say cooling infrastructure is becoming a critical component of AI data center expansion as operators seek to manage the higher heat loads generated by advanced computing systems. Establishing local production in North America is expected to help LG Electronics improve supply stability and respond more quickly to growing demand in the region.
LG Electronics is also broadening its data center cooling portfolio beyond chillers. The company plans to expand its business around liquid-cooling solutions, including coolant distribution units (CDUs) and cold plates that directly absorb heat generated by semiconductor chips.
The company is pursuing a “Chip to Chiller” strategy that connects cooling technologies from the chip level to the chiller, allowing it to offer integrated thermal management solutions for data center operators.
“We will continue to strengthen our supply capabilities for cooling solutions, a core infrastructure component of AI data centers, and actively respond to rapidly growing market demand,” said Lee Jae-sung, president of LG Electronics’ Eco Solution (ES) Company.
