LG Electronics is expanding its global chiller manufacturing capabilities with a new production facility in the United States and increased production capacity in South Korea.
The investment will bolster the company's ability to deliver end-to-end cooling solutions for AI data centres (AIDCs), while LG's growing liquid cooling technologies strengthen the company's position as a comprehensive "Chip-to-Chiller" solutions provider.
The establishment of LG’s first US chiller factory in Virginia was announced by Governor Abigail Spanberger.
The new 350,000-square-foot state-of-the-art facility, which is on a 43-acre site in Isle of Wight County, will produce air-cooled chillers for AIDCs, with production scheduled to begin in the first half of 2027.
LG's new Virginia facility aims to support a stable, responsive supply system for the rising chiller needs across North America, while serving as a strategic base for LG's regional expansion, according to Don Kwack, president & CEO, LG Electronics North America.
"This factory represents an important step in LG Electronics' strategy to expand production capacity for advanced cooling technologies and better serve the rapidly expanding customer base in North America," Kwack said.
"Virginia offers the workforce, location and infrastructure needed to support our long-term growth."
The investment will create more than 150 new jobs in the local community.
President of LG Electronics USA's Air Conditioning Technology division, Chris Ahn, said with this chiller plant LG is addressing the growing need for advanced cooling solutions for data centres across the country.
"Chillers produced in Virginia also will support LG's role as a total HVAC solutions provider offering US customers a broad portfolio of heating, ventilation, air conditioning and water heating products and building controls," he said.
With more than half of the world's AIDCs located in North America, Ahn said the region represents a significant market opportunity, and Virginia is home to a large concentration of data centers operated by major technology companies.
"As AI adoption accelerates, AIDCs are becoming critical infrastructure for large-scale data processing and high-performance computing," Ahn said.
"Their stable operation depends on effective heat management, making high-performance cooling solutions, including chillers, essential."
LG is also expanding its air-cooled chiller production lines in Pyeongtaek and Changwon, South Korea. The company is improving operational efficiency by adopting a conveyor-based production system designed for mass production.
The system moves products through the production process on a single conveyor, enabling more efficient manufacturing and helping LG respond quickly to increased demand.
The company plans to invest a total of KRW 150 billion in its new US facility and its factories in Pyeongtaek and Changwon.
These investments will expand LG's chiller manufacturing capabilities across the United States and South Korea and support growing demand for air-cooled chillers.
Alongside the new US facility and Korean production expansions, LG is broadening its AIDC thermal management business through its global Chip-to-Chiller solution strategy.
The portfolio includes chillers, Coolant Distribution Units (CDUs) and cold plates that absorb heat directly from chips.
According to global market research firm Omdia, global data centre capacity is projected to grow from 226 GW in 2026 to 420 GW in 2030, an increase of 194 GW, with 60 per cent of the additional capacity expected to be concentrated in North America.
To address the growing demand, the company's Direct-to-Chip liquid cooling solution circulates coolant through cold plates, complementing its existing air-cooling offerings.
Combined with cooling management systems, software and power infrastructure, these technologies are designed to improve energy efficiency and data-processing performance.
Building on these capabilities, LG is pursuing additional AIDC projects in North America through its relationships with leading hyperscalers and big tech companies.
In Asia, LG is applying its "One LG" strategy by combining heating, ventilation and air conditioning technologies with battery solutions and data center design, build and operation capabilities from other LG affiliates.
LG is also applying this integrated approach to Sinar Mas Group's hyperscale AIDC project in Jakarta, Indonesia.