LG Electronics to Build U.S. Chiller Plant for AI Data Centers
LG Electronics is expanding its production footprint in the United States and South Korea to capture surging demand for cooling solutions driven by the rapid growth of artificial intelligence (AI) data centers. The move is aimed at improving supply reliability and strengthening its position in the g
LG Electronics plans to build a chiller production plant in Windsor, Virginia, aimed at meeting the increasing demand for cooling solutions from AI data centers. The new facility, spanning 32,000 square meters, will begin operations in the first half of next year on a 170,000 square meter site. This expansion in North America is part of LG's strategy to improve supply reliability and increase its market position.
The rising demand for data center power capacity, projected to grow from 226 gigawatts this year to 420 GW by 2030, with around 60% in North America, underscores the need for reliable cooling systems. LG Electronics will also boost its production capacity at domestic plants in Pyeongtaek and Changwon, utilizing a new flow-line manufacturing system to enhance productivity.
The total investment in the U.S. plant and domestic production-line expansion is approximately 150 billion won, or $110.24 million. LG is also expanding its "Chip to Chiller" solution, covering data center thermal management from equipment supply to coolant distribution units and heat absorption devices. This integrated approach, combined with software and power infrastructure solutions, reflects LG's "One LG" strategy, integrating various affiliates for project bids.
One example is a large-scale AI data center project in Jakarta, Indonesia, combining LG's HVAC technology with solutions from LG Energy Solution and LG CNS. LG Electronics aims to strengthen its cooling solution supply and respond to the growing market demand by expanding production lines and upgrading equipment globally.
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