LG Electronics has secured a long-term contract to supply cooling equipment for a total of 5 gigawatts (GW) of artificial intelligence (AI) data centers in North America. The company has established a foundation for sequentially supplying chillers for a large project in collaboration with a local firm overseeing the data center construction.
On October 6, LG Electronics announced that its U.S. subsidiary has signed a long-term supply agreement (LTA) with Air Control Concept, a North American infrastructure platform company, for chillers designed for AI data centers. Chillers are essential equipment that cools water to manage the heat generated in data centers. The contract amount and specific supply duration have not been disclosed.
Air Control Concept is responsible for everything from the design and construction of data centers to procurement and after-service in the U.S. and Canada. It carries out large projects through its specialized subsidiary, AMC. With this contract, LG Electronics will supply high-efficiency chillers and other cooling solutions for the total 5GW data center initiative led by Air Control Concept.
The two companies are also discussing ways to expand their supply items to include cooling water distribution units (CDUs), which are key components of liquid cooling systems. This move aims to address the increasing demand for combining air cooling with liquid cooling due to the rising heat generated by high-performance graphics processing units (GPUs) used in AI computations. The CDU, which operates on a liquid heat exchange method, separates the circulation circuits of building cooling water and server cooling liquid while controlling the temperature, pressure, and flow rate of the cooling liquid on the server side.
If the supply of CDUs is finalized, LG Electronics will provide equipment that manages heat close to the servers, in addition to the systems that generate cooling water for data centers. However, the CDU supply is currently in the negotiation stage.
In the first half of this year, LG Electronics' orders for AI data center cooling solutions exceeded 600 billion won. The company expects cumulative orders to reach several trillion won by the end of the year, potentially accelerating the timeline for achieving 1 trillion won in sales for its chiller business, initially targeted for the end of 2027.
Since this year, LG Electronics has been supplying and installing cooling equipment for a large North American data center it secured last year. The company has also established supply records in the Middle East and Indonesia. LG Electronics plans to expand its data center business through an integrated infrastructure solution called 'One LG,' which combines the capabilities of its group affiliates.
Lee Jae-sung, head of LG Electronics' ES Business Division, stated, "We will lead the global AI data center cooling market based on our differentiated technology, including high-efficiency chillers and high-performance liquid cooling solutions, as well as our rapidly expanding experience in supplying large-scale data centers."
* This article has been translated by AI.
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