LG Electronics to Invest $110 Million in Virginia Chiller Plant for AI Data Centers

LG Electronics said Thursday it will invest 150 billion won ($110 million) to build a chiller plant in Virginia and expand production in Korea, as demand for cooling systems rises with the growth of AI data centers.

The company plans to start production at the new plant in Windsor, Virginia, in the first half of 2027. The facility will span 32,000 square meters on a 170,000-square-meter site and produce air-cooled chillers mainly for AI data centers.

LG said the US plant will place production closer to major data center customers in North America, helping shorten delivery times and improve supply stability.

Global power capacity required by data centers is expected to rise from 226 gigawatts this year to 420 GW by 2030, with North America accounting for about 60 percent, according to market researcher Omdia.

In Korea, LG is adding air-cooled chiller lines at its plants in Pyeongtaek, Gyeonggi Province, and Changwon, South Gyeongsang Province, while upgrading production facilities. It will also introduce a flow-line system and plans to run multiple production lines simultaneously by year-end.

The company is also expanding its “chip to chiller” portfolio, which covers cooling systems from individual chips to large-scale equipment. The lineup includes coolant distribution units and cold plates that absorb heat directly from chips.

In Asia, LG is supplying an integrated solution to a hyperscale AI data center being built in Jakarta by Indonesia’s Sinar Mas Group, combining LG Electronics’ heating, ventilation and air conditioning technologies with battery solutions from LG Energy Solution and data center expertise from LG CNS.

“We will continue to strengthen our ability to ensure a stable supply of cooling solutions, a key part of AI data center infrastructure, to meet rapidly growing market demand,” said Lee Jae-sung, head of LG Electronics' Eco Solution business.