LG Electronics bets 150 billion won on AI cooling

LG Electronics will invest 150 billion won ($110.4 million) to build a chiller plant in Windsor, Virginia, and expand Korean production for growing AI data center demand.

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A rendering shows a virtual AI data center equipped with LG Electronics' high-performance chillers and other cooling solutions. LG Electronics said Oct. 1 it will build a chiller plant in Virginia and expand production lines in Korea.

LG Electronics will invest 150 billion won ($110.4 million) to build an air-cooled chiller plant in Virginia and add production lines at its plants in Pyeongtaek, Gyeonggi, and Changwon, South Gyeongsang, in Korea, the company said Thursday.

LG is expanding capacity to keep up with surging demand for cooling systems at AI data centers.

Air-cooled chillers cool engines and electronic equipment by passing air over them rather than circulating cooling water. They are used for heating, ventilation and air conditioning in large buildings, commercial facilities and data centers.

The new plant in Windsor, Virginia, will supply chillers to data centers in North America. Virginia is a key market that LG says is home to more than half of the world's AI data centers.

The factory will have a total floor area of 32,000 square meters (344,000 square feet) on a 170,000-square-meter site. LG aims to begin production there in the first half of next year.

LG will also build new air-cooled chiller production lines at its plants in Pyeongtaek, Gyeonggi, and Changwon, South Gyeongsang, and upgrade existing equipment there. The new lines use flow-line production equipment, which handles every step of the process on a single conveyor and raises productivity. The company plans to add chiller production capacity at both plants in stages through the end of the year.

Beyond chillers, LG has assembled what it calls a "chip-to-chiller" lineup for managing heat in AI data centers. The lineup includes coolant distribution units and cold plates that absorb heat directly from semiconductor chips, and the company plans to accelerate growth of its high-performance cooling business.

Rows of air-cooled chiller units sit beside a large industrial building and electrical substation.
A rendering shows a virtual AI data center equipped with LG Electronics' high-performance chillers and other cooling solutions. LG Electronics said Oct. 1 it will build a chiller plant in Virginia and expand production lines in Korea.

In North America, LG will focus on winning large-scale orders by building ties with global big tech companies, including hyperscale data center operators. It plans to offer software and power infrastructure solutions as well as cooling systems.

In Asia, LG is promoting LG Energy Solution's battery solutions and LG CNS's capabilities in data center design, construction and operation alongside its own products. The company is seeking data center business opportunities for the LG Group as a whole.

"We will keep strengthening our ability to reliably supply cooling solutions, a core piece of AI data center infrastructure, and aggressively go after surging market demand," said Lee Jae-sung, president of LG Electronics' Eco Solution Company.


BY KIM KYUNG-MI [[email protected]]

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.