SEOUL, October 06 (AJP) -LG Electronics is expanding its cooling business on the back of the AI data center boom, securing a long-term deal to supply systems for 5 gigawatts of capacity in North America as cooling becomes critical to keeping increasingly powerful AI processors from overheating and sustaining their performance under heavy computing loads.
LG's U.S. unit signed a long-term supply agreement with AIR Control Concept, a North American data center infrastructure company, to provide high-efficiency chillers and other cooling systems in phases, the company said Tuesday. The financial terms and supply period were not disclosed.
The 5-GW capacity represents a sizable order as demand for electricity and cooling infrastructure rises alongside AI computing. Global data center power capacity is expected to increase by 108 GW to 334 GW in 2027 from 226 GW this year, according to Omdia figures cited by LG.
LG and AIR are also discussing expanding the partnership to coolant distribution units, or CDUs, used in liquid-cooling systems as increasingly powerful AI processors generate more heat.
LG said orders for its AI data center cooling solutions exceeded 600 billion won ($447 million) in the first half of this year and are expected to reach several trillion won by year-end. The company has been expanding the business in North America as well as the Middle East and Southeast Asia.
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