LG Electronics is accelerating its entry into the global AI data center cooling solutions market by establishing its first chiller production facility in the United States and expanding domestic production lines. The company plans to invest approximately 150 billion won in both South Korea and the U.S. to significantly increase production capacity and enhance technological capabilities.
On September 30, LG Electronics announced plans to build a new chiller factory in Windsor, Virginia, with a total floor area of 32,000 square meters and a site area of 170,000 square meters, aiming to begin operations in the first half of next year.
The new factory, which will cost about 90 billion won, will focus on producing air-cooled chillers for North American AI data centers. Chillers, which generate large quantities of cold water, are essential for heating, ventilation, and air conditioning (HVAC) systems in large facilities, as well as for air and liquid cooling in data centers.
LG Electronics plans to leverage its local production base in Virginia, where many big tech data centers are located, to establish a stable and rapid supply chain, serving as a foothold for its North American market strategy.
At the same time, the company will invest about 60 billion won to gradually establish and expand air-cooled chiller production lines at its factories in Pyeongtaek and Changwon by the end of this year. The introduction of a flow line production system, where all processes from the first to the final step are conducted on a single conveyor, will significantly enhance productivity.
LG Electronics is showcasing its differentiated competitiveness by combining key elements of thermal management for AI data centers, such as chillers, cooling distribution units (CDUs), and cold plates, with software and power infrastructure solutions that improve energy efficiency. The company aims to expand its global customer base by leveraging the capabilities of its affiliates, including LG Energy Solution and LG CNS, under the 'One LG' total solution approach.
Lee Jae-sung, head of LG Electronics' Energy Solutions Business Division, stated, "We will continuously strengthen our stable supply capacity in the cooling solutions sector, which is a core infrastructure of AI data centers, to actively address the rapidly increasing market demand."
* This article has been translated by AI.
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