LG Electronics signs 5GW AI data center cooling supply deal in North America
In short
LG Electronics said its US subsidiary signed a long-term supply agreement with North American infrastructure platform company AIR Control Concept to provide chillers and other cooling solutions for a total of 5GW of AI data centers. The company did not disclose the contract value; industry estimates put it in the trillions of won, and Korea Economic Daily's headline put it at 5 trillion won. LG said the order should help it reach its 1 trillion won chiller revenue target earlier than the late-2027 goal.
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LG Electronics said its US subsidiary recently signed a long-term supply agreement with AIR Control Concept, a North American infrastructure platform company, to supply chillers and other cooling solutions for a total of 5GW of AI data centers, the company announced on Oct. 5. The contract value was not disclosed, and industry estimates cited by the outlets put it in the trillions of won; Korea Economic Daily's headline put the deal at 5 trillion won. Chosun Ilbo described a chiller as a large refrigeration unit that produces chilled water to cool heat from equipment. [ 2 , 5 , 7 , 10 , 12 , 13 ]
According to the reports, AIR handles data center design, construction, procurement and aftermarket services in the United States and Canada and carries out large projects through its data center subsidiary AMC (AIR Mission Critical). LG Electronics said the long-term structure means it does not have to compete in bidding for each project and secures stable volume, and that the contract confirms its cooling solutions meet the technical and reliability standards of large data center projects, strengthening its position as a core infrastructure partner in the North American AIDC supply chain. [ 5 , 7 , 9 , 10 , 17 ]
LG said the 5GW order equals about 5% of the power capacity the world's data centers are expected to add next year. Market research firm Omdia expects global data center power capacity to grow from 226GW this year to 334GW next year, an increase of 108GW, the company said; Hankook Ilbo put the contract at about 4.6% of that increase. The two companies are also discussing expanding the supply to coolant distribution units, a key piece of liquid-cooling equipment, LG said, adding that it is broadening its business into a “chip to chiller” total solution covering both air and liquid cooling. [ 5 , 9 , 10 , 16 ]
LG Electronics said orders for AIDC cooling solutions in the first half of this year exceeded 600 billion won and that cumulative orders through year-end could reach trillions of won. The company said its target of 1 trillion won in chiller revenue, set for late 2027, could now be reached earlier. LG said it plans to build a new chiller plant in Windsor, Virginia, targeting production in the first half of next year. Yonhap reported that a large North American AIDC project ordered last year began supply and installation this year and that LG also signed supply contracts in the Middle East and Indonesia. [ 5 , 7 , 9 , 10 , 11 , 16 ]
Lee Jae-sung, head of LG Electronics' ES business division, said the company “will lead the global AI data center cooling market” based on high-efficiency chillers, high-performance liquid cooling solutions and large-scale data center supply experience. Brad Hobbs, CEO of AIR, said that with LG's high-efficiency chiller technology the company “can provide proven solutions” while building its AI data center portfolio. [ 7 , 9 , 10 , 16 ]
Why it matters
The contract shows how rising power use at AI data centers is creating demand for cooling equipment, and it expands LG Electronics' cooling business in North America, which several outlets described as the largest AI data center market. LG said the 5GW order is about 5% of the power capacity Omdia expects data centers worldwide to add next year, and the company said it expects the deal to bring its 1 trillion won chiller revenue target forward.
Key facts
- LG Electronics said its US subsidiary signed a long-term supply agreement with AIR Control Concept to supply chillers and other cooling solutions for 5GW of AI data centers in North America. [ 5 , 7 , 10 ]
- LG Electronics announced the contract on Oct. 5. [ 5 , 10 , 13 ]
- The contract value was not disclosed; industry estimates cited by outlets put it in the trillions of won. [ 2 , 5 , 9 ]
- Chosun Ilbo described a chiller as a large refrigeration unit that produces chilled water to cool heat from equipment. [ 13 ]
- LG Electronics said the 5GW order is about 5% of the 108GW increase in global data center power capacity Omdia expects next year, from 226GW to 334GW. [ 5 , 10 ]
- The two companies are discussing expanding supply to coolant distribution units, a key liquid-cooling device. [ 7 , 10 , 16 ]
- LG Electronics said first-half AIDC cooling orders exceeded 600 billion won and that cumulative orders could reach trillions of won by year-end. [ 7 , 9 , 10 , 16 ]
- LG Electronics plans a new chiller plant in Windsor, Virginia, targeting production in the first half of next year. [ 5 , 11 ]
Confirmed by several sources
- LG Electronics' US subsidiary signed a long-term supply agreement with AIR Control Concept for AI data center chillers covering a total of 5GW, the company said on Oct. 5. [ 4 , 5 , 7 , 10 ]
- LG Electronics will supply high-efficiency chillers and other cooling solutions sequentially to 5GW of AI data centers built by AIR. [ 5 , 7 , 10 , 17 ]
- AIR Control Concept is a North American infrastructure platform company that handles data center design, construction, procurement and aftermarket services in the United States and Canada. [ 5 , 7 , 9 , 10 ]
- The contract value was not disclosed. [ 2 , 3 , 9 ]
- The two companies are discussing expanding supply to coolant distribution units (CDU), a key liquid-cooling device. [ 5 , 7 , 10 , 16 ]
- LG Electronics said its first-half AIDC cooling solution orders exceeded 600 billion won and that cumulative orders could reach trillions of won by year-end. [ 7 , 9 , 10 , 16 ]
- Omdia expects global data center power capacity to rise from 226GW this year to 334GW next year, and LG said the 5GW order equals about 5% of that increase. [ 5 , 9 , 10 ]
Still unclear
- The value of the contract LG Electronics did not disclose it; several outlets reported industry estimates of trillions of won, and Korea Economic Daily's headline put the deal at 5 trillion won, a figure no other document states.
- The length of the supply agreement Only Seoul Economic Daily reported an industry estimate of three to five years; the other documents give no contract term.
- When the agreement was signed Electronic Times said the LTA was signed on Oct. 5, while other outlets said the US subsidiary signed it recently and that LG announced it on Oct. 5.
- The share of next year's expected capacity growth represented by the order Most documents said about 5%, while Hankook Ilbo said about 4.6%; the documents do not explain the difference.
What local media are saying
Timeline, local time
- Kukmin Ilbo publishes a report that LG Electronics will supply 5GW of cooling solutions to a North American AI data center. [ 1 ]
- Chosun Ilbo reports that LG Electronics' US unit signed a long-term contract to supply cooling equipment for 5GW of AI data centers in the US. [ 2 , 3 ]
- Electronic Times, Seoul Economic Daily, Asia Economy, Kyunghyang Shinmun, Newsis and Hankook Ilbo report the LTA with AIR Control Concept; Yonhap follows at 22:06. [ 4 , 5 , 6 , 7 , 8 , 9 , 10 ]
- Maeil Business and Korea Economic Daily report the deal; Korea Economic Daily's headline puts the contract at 5 trillion won. [ 11 , 12 ]
- Chosun Ilbo publishes a follow-up on the chiller supply agreement. [ 13 , 14 ]
- ZDNet Korea reports the deal and the talks on liquid-cooling CDU supply. [ 16 ]
- Dong-A Ilbo reports the contract on Oct. 6. [ 17 ]
- Seoul Shinmun reports the agreement on Oct. 6. [ 18 ]