AIR Control Concepts said on 5 October that LG Electronics USA had signed a long-term supply agreement to provide chillers for AI data centre projects exceeding 5GW of capacity in the United States and Canada.
Key points
- An LG spokesperson valued the agreement at several trillion won, Korea JoongAng Daily reported.
- LG will deliver chillers and other cooling equipment in phases for North American AI data centres.
- LG’s first-half AI data centre cooling orders exceeded 600 billion won, Korea JoongAng Daily reported.
- LG has announced plans to invest 150 billion Korean won in chiller production in the United States and South Korea.
AIR agreement covers more than 5GW
The agreement is worth several trillion won, or several billion dollars, an LG spokesperson told Korea JoongAng Daily. LG will supply chillers and other cooling equipment in phases for AI data centres totalling 5GW of capacity.
AIR describes the arrangement as a multi-year supply programme. It says it oversees large infrastructure projects in North American data centre hubs and serves major global operators. AIR operates through more than 50 companies with more than 3,500 associates worldwide, according to its announcement.
The planned deliveries extend beyond a single data centre project. AIR says the agreement supports projects exceeding 5GW, while LG described the contract as guaranteeing large volumes. The cooling equipment will reach those projects in phases.
LG and AIR are discussing whether to extend the supply arrangement to coolant distribution units. Those units manage the flow and temperature of coolant delivered to chips in liquid-cooled systems. The companies’ signed arrangement centres on chillers, which produce the cooling used by data centres.
LG says its air-cooled centrifugal chiller uses outdoor air to reduce the work required of its compressor. In an internal simulation, LG calculated approximately 30 percent lower annual energy use for refrigerant free-cooling than for waterside free-cooling. The calculation used a single 1,750 kW unit at 100 percent cooling capacity under Seoul-area climate conditions. LG says consumption can vary with installation and operating conditions.
LG cooling orders exceeded 600 billion won
LG’s orders for AI data centre cooling exceeded 600 billion won ($446.4 million) in the first half of 2026, Korea JoongAng Daily reported. LG expects cumulative orders to reach several trillion won by the end of 2026. Orders and chiller sales are separate measures in the company’s stated targets.
LG expects to reach its chiller business revenue target of approximately $680 million (1 trillion Korean won) ahead of its original end-2027 timetable, according to AIR’s announcement. AIR’s announcement warns that the forward-looking revenue target may not be met if circumstances change.
LG says it has supplied cooling equipment for hyperscale AI data centres in North America and is working on data centre projects in the Middle East and Indonesia. It says the AIR agreement advances its plans to expand the cooling business beyond individual project bids.
The company has also pursued other routes into AI infrastructure. AI Affairs previously reported LG’s qualification of a 2.6-MW cooling unit for Nvidia AI factories and its expanded AI partnership with Microsoft, which included data centres alongside enterprise tools and physical AI.
LG plans 150 billion won production investment
LG announced plans on 1 October to invest 150 billion Korean won in a chiller production base in Virginia and expanded production lines in Pyeongtaek and Changwon, Chosun reported. AI Affairs reported the planned US plant and Korean expansion.
Other cooling suppliers are adding capacity or winning data centre work. Samsung Electronics acquired European HVAC company Flakt Group in 2025 and began building a new HVAC production line in Gwangju in September 2026, Chosun reported. Autech Carrier was selected in August 2026 to supply cooling for a 48MW data centre project near Seoul.
LG is developing HVAC and other business-to-business operations as its television and home-appliance markets slow, Chosun reported. Business-to-business sales, including HVAC, exceeded 35 percent of LG’s total revenue in 2025. LG aims to raise that share to 40 percent by 2030.
