LG Electronics commits 150 billion won to US and Korean chiller plants for AI data centres

LG Electronics will spend a combined 150 billion won (about $110 million) on new chiller manufacturing capacity in the United States and South Korea, targeting demand for cooling equipment from artificial-intelligence data centres. The company said on 1 October that it will build a chiller plant in Windsor, Virginia, according to Opinion News.

Chillers produce large volumes of chilled water that support both air and liquid cooling inside a data centre, making them a core thermal-management asset as rack power densities climb. Opinion News reported that the Virginia plant is scheduled to start operating in the first half of next year, while Today Energy described the same timeline as the target for the start of mass production.

A plant inside the data-centre valley

The Windsor facility will be dedicated to air-cooled chillers, the type most commonly supplied to AI data centres. Both publications gave the same physical parameters for the site.

• Floor area: 32,000 square metres
• Site area: 170,000 square metres
• Product focus: air-cooled chillers for AI data centres
• Production start: first half of next year

Virginia hosts a dense cluster of big-tech data centres and is known locally as the “data centre valley”, Today Energy noted, and a local base gives LG a faster and more stable supply route to those customers. Today Energy cited market researcher Omdia forecasting that global data-centre power capacity will jump from 226 GW this year to 420 GW in 2030, with 60% of that capacity concentrated in North America. Opinion News framed the market differently, reporting that more than half of the world's AI data centres are already clustered in North America.

Korean lines move to conveyor flow production

LG Electronics is also overhauling its domestic production base. New air-cooled chiller lines are being installed at the Pyeongtaek and Changwon plants, and the company is introducing a conveyor-based flow-line method that handles the product from the first process to the last on a single line, a change both outlets link to a sharp increase in productivity.

According to Today Energy, the Korean lines will be added in stages through the end of this year until several run simultaneously. The 150 billion won covers both the new US plant and the Korean line additions and equipment upgrades.

Chip to chiller

The investment sits alongside a push to sell the full thermal stack rather than individual machines. LG Electronics says it now covers every core component of AI data-centre heat management: the chiller itself, the coolant distribution unit (CDU), and the cold plate that absorbs heat directly from the chip. That “Chip to Chiller” line-up is combined with software and power infrastructure solutions aimed at maximising energy efficiency, and the company is also strengthening its liquid-cooling capability.

In North America, LG is leaning on its network of large operators. In Asia, it is selling a combined “One LG” package: for a hyperscale AI data centre being built in Jakarta, Indonesia, the group is supplying LG Electronics HVAC equipment together with LG Energy Solution batteries and LG CNS design, build and operate (DBO) capability, a reference project cited by both publications.

“We will continue to strengthen our stable supply capability in cooling solutions, the core infrastructure of AI data centres, and actively pursue the rapidly growing market demand,” said Lee Jae-sung, president and head of LG Electronics' ES Business Division.