Company Establishes New Chiller Plant in U.S. and Expands Production
in South Korea While Advancing Its “Chip-to-Chiller” Cooling Solutions
News Summary
SEOUL, Oct. 1, 2026 — LG Electronics (LG) is expanding its global chiller manufacturing capabilities with a new production facility in the United States and increased production capacity in South Korea, further strengthening its ability to deliver end-to-end cooling solutions for AI data centers (AIDCs), while its growing liquid cooling technologies will strengthen the company’s position as a comprehensive “Chip-to-Chiller” solutions provider.
Establishing Air-Cooled Chiller Production Facility in Virginia, USA
As AI adoption accelerates, AIDCs are becoming critical infrastructure for large-scale data processing and high-performance computing. Their stable operation depends on effective heat management, making high-performance cooling solutions, including chillers, essential.
To address this demand, LG is establishing a new air-cooled chiller production facility in the United States. The plant, in Windsor, Virginia, which will span 30,000 square meters of gross floor area on a 170,000-square-meter site, will produce air-cooled chillers for AIDCs, with production scheduled to begin in the first half of 2027.
With more than half of the world’s AIDCs located in North America, the region represents a significant market opportunity. Virginia is home to a large concentration of data centers operated by major technology companies. The new LG facility’s chiller production will support a stable, responsive supply system for rising demand across North America, while serving as a strategic base for LG’s regional expansion.
Expanding Production at Korean Facilities
LG is also expanding its air-cooled chiller production lines in Pyeongtaek and Changwon, South Korea. The company is improving operational efficiency by adopting a conveyor-based production system designed for mass production. The system moves products through the production process on a single conveyor, enabling more efficient manufacturing and helping LG respond quickly to increased demand.
The company plans to invest a total of KRW 150 billion in its new U.S. facility and its factories in Pyeongtaek and Changwon. These investments will expand LG’s chiller manufacturing capabilities across the United States and South Korea and support growing demand for air-cooled chillers.
Advancing Integrated Chip-to-Chiller Cooling Solutions
Alongside the new U.S. facility and domestic production expansions, LG is broadening its AIDC thermal management business through its Chip-to-Chiller solution strategy. The portfolio includes chillers, Coolant Distribution Units (CDUs) and cold plates that absorb heat directly from chips.
According to global market research firm Omdia, global data center capacity is projected to grow from 226 GW in 2026 to 420 GW in 2030, an increase of 194 GW, with 60 percent of the additional capacity expected to be concentrated in North America. To address the growing demand, the company’s Direct-to-Chip liquid cooling solution circulates coolant through cold plates, complementing its existing air-cooling offerings. Combined with cooling management systems, software and power infrastructure, these technologies are designed to improve energy efficiency and data-processing performance.
Building on these capabilities, LG is pursuing additional AIDC projects in North America through its relationships with leading hyperscalers and big tech companies. In Asia, LG is applying its “One LG” strategy by combining heating, ventilation and air conditioning technologies with battery solutions and data center design, build and operation capabilities from other LG affiliates. LG is also applying this integrated approach to Sinar Mas Group’s hyperscale AIDC project in Jakarta, Indonesia.
“We will continue to strengthen our core capabilities in AI data center cooling solutions, from differentiated product technologies to production capacity,” said James Lee, president of the LG Eco Solution Company. “With these capabilities, we will ensure a stable supply and actively address rapidly growing market demand.”
# # #
