LG Electronics is expanding its global chiller manufacturing capabilities with a new production facility in the United States and increased production capacityin South Korea, bolstering the company’s ability to deliver end-to-end cooling solutions for AI data centers (AIDCs), while LG’s growing liquid cooling technologies strengthen the company’s position as a comprehensive “Chip-to-Chiller” solutions provider.

LG is establishing its first U.S. chiller factory in Virginia. Announced by Governor Abigail Spanberger, the new 350,000-square-foot state-of-the-art facility, 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 and CEO, LG Electronics North America.

Addressing Strong North American Demand for AIDC Chillers

“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. Virginia offers the workforce, location and infrastructure needed to support our long-term growth,” Kwack said.

LG’s decision to establish a state-of-the-art facility in Virginia “is a reflection of their confidence in the Commonwealth and our longstanding position as a top state for business,” Governor Spanberger said. “Not only will this investment create more than 150 new jobs in the community, but these energy-efficient innovations will be key to meeting Virginia’s growing energy demands and building a more sustainable future.”

Virginia Secretary of Commerce and Trade Carrie Chenery, said, “Coupled with access to The Port of Virginia and key road and rail networks, LG has positioned itself to rapidly respond to critical HVAC demand across the county. With our robust talent pipeline and top-ranked workforce training programs, Virginia is the ideal place for LG to establish a highly skilled, quickly scaled presence.”

“With our first chiller plant in the United States, LG is addressing the growing need for advanced cooling solutions for data centers across the country,” Chris Ahn, president of LG Electronics USA’s Air Conditioning Technology division, said. “Chillers produced in Virginia also will support LG’s role as a total HVAC solutions provider offering U.S. customers a broad portfolio of heating, ventilation, air conditioning and water heating products and building controls.”

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. “Their stable operation depends on effective heat management, making high-performance cooling solutions, including chillers, essential,” said Ahn.

Expanding Production at Korean Facilities

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-basedproduction 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 U.S. 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.

Advancing Integrated Chip-to-Chiller Cooling Solutions

Alongside the new U.S. facility and Korean production expansions, LG is broadening its AIDC thermal management business through its global Chip-to-Chiller solution strategy. The portfolioincludes chillers, Coolant Distribution Units (CDUs) and cold plates that absorb heat directly from chips.

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. 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 efficiencyand 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.