LG Electronics announced on October 1, 2026, that it is expanding its global chiller manufacturing capabilities through a new production facility in the United States and increased production capacity in South Korea.

The move is intended to strengthen the company's ability to deliver end-to-end cooling solutions for AI data centers (AIDCs) and reinforce its position as a comprehensive "Chip-to-Chiller" solutions provider.

New Air-Cooled Chiller Facility in Virginia

As AI adoption accelerates, AI data centers have become critical infrastructure for large-scale data processing and high-performance computing, and their stable operation depends on effective heat management.

To address this demand, LG is establishing a new air-cooled chiller production facility in Windsor, Virginia. The plant will span 30,000 square meters of gross floor area on a 170,000-square-meter site and will produce air-cooled chillers for AI data centers, with production scheduled to begin in the first half of 2027.

The choice of location reflects the concentration of demand in North America, where more than half of the world's AI data centers are located. Virginia is home to a large concentration of data centers operated by major technology companies.

According to LG, the new facility will support a stable, responsive supply system for rising chiller demand across North America and serve as a strategic base for the company's regional expansion.

Expanding Production in South Korea

In addition to the U.S. facility, LG is expanding its air-cooled chiller production lines at its existing factories in Pyeongtaek and Changwon, South Korea. The company is adopting a conveyor-based production system designed for mass production, in which products move through the production process on a single conveyor. LG says the system will enable more efficient manufacturing and help the company respond quickly to increased demand.

The company plans to invest a total of USD 110.24 million across its new U.S. facility and its factories in Pyeongtaek and Changwon. These investments are intended to expand LG's chiller manufacturing capabilities in the United States and South Korea and to support growing demand for air-cooled chillers.

Advancing Chip-to-Chiller Cooling Solutions

Alongside its production expansion, LG is broadening its AI data center thermal management business through its Chip-to-Chiller solution strategy. The portfolio includes chillers, Coolant Distribution Units (CDUs), and cold plates that absorb heat directly from chips.

Through what the company describes as its "One LG" approach, LG is expanding integrated AI data center solutions spanning chillers and Direct-to-Chip cooling to energy and data center infrastructure.

The company's Direct-to-Chip liquid cooling solution circulates coolant directly to heat-generating chips, forming part of the broader thermal management offering.

According to global market research firm Omdia, global data center capacity is projected to grow from 226 GW in 2026 to 420 GW in 2030, an increase of 194 GW, with 60 percent of the additional capacity expected to be concentrated in North America. LG cites this projected growth as the basis for addressing rising demand through its expanded manufacturing footprint and integrated cooling solutions.

Stay Ahead of the United States Data Center Boom, From Hyperscale to Colocation

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