LG Electronics said on 1 October it plans to invest KRW 150 billion in its first US chiller factory and expanded production at two South Korean plants, with Virginia output due to begin in the first half of 2027, according to its announcement.
Key points
- LG plans a 350,000-square-foot factory in Windsor, Virginia, to produce air-cooled chillers for AI data centres.
- The KRW 150 billion investment also covers additional production lines at LG plants in Pyeongtaek and Changwon.
- The Virginia project represents a $63.9 million investment and is expected to create 164 jobs, Virginia Business reported.
LG takes space in Windsor
LG says its Windsor operation will occupy a 43-acre site in Isle of Wight County. The facility will make air-cooled chillers for AI data centres, placing production nearer to the North American customers the company aims to serve. LG describes it as its first US chiller factory.
Virginia Governor Abigail Spanberger announced the project on 30 September. The state investment is $63.9 million and the operation is expected to create 164 jobs, Virginia Business reported. LG’s KRW 150 billion figure covers both the Virginia project and its South Korean production expansion.
The Windsor site is the 460 Commerce Center, a building completed by W.M. Jordan Co. in August 2025 within the Shirley T. Holland Intermodal Park. Virginia Business reported that LG’s employees will assemble industrial air-cooling systems there for customers including data centre operators and developers.
According to an LG spokesperson, the plant will assemble an air-cooled centrifugal chiller the company introduced in September. The product uses oil-free magnetic bearing compressors. Its air-cooled design provides a different approach from water-cooled chillers, which use water to carry away heat.
LG Electronics North America chief executive Don Kwack said the Virginia location offers the workforce and infrastructure for the company’s expansion. The company says the factory is intended to make its supply of chillers to North American customers more responsive as demand grows.
North American demand shapes LG’s plans
LG says more than half of the world’s AI data centres are in North America. Omdia projects that global data centre power capacity will rise from 226 GW in 2026 to 420 GW in 2030, with 60 percent of the additional capacity in North America, according to figures LG included in its announcement.
The company plans to seek large orders from technology companies and hyperscale data centre operators in North America, Korea JoongAng Daily reported. It intends to offer cooling equipment alongside software and power infrastructure solutions. The Virginia factory is one part of that effort to supply equipment locally.
LG’s cooling range extends from chillers to coolant distribution units and cold plates that absorb heat directly from chips. An earlier AI Affairs report covered its qualification of a 2.6-MW cooling unit for Nvidia AI factories.
LG has also pursued customers through partnerships. AI Affairs previously reported its expanded partnership with Microsoft across data centres, enterprise tools and physical AI. Its new factory and Korean lines add manufacturing capacity to that broader commercial push.
Pyeongtaek and Changwon add chiller lines
In South Korea, LG plans to expand air-cooled chiller production at its Pyeongtaek and Changwon plants. The company says it is introducing a conveyor-based system that moves products through successive manufacturing steps, allowing it to produce chillers in greater volume.
The combined investment makes LG responsible for capacity additions on both sides of the Pacific. The Virginia operation is aimed at North American supply, while the Korean plants are receiving new lines and equipment upgrades. LG has presented the work as a response to demand for air-cooled chillers.
LG also plans to draw on LG Energy Solution’s batteries and LG CNS’s data centre design and operating capabilities when pursuing projects in Asia, Korea JoongAng Daily reported. That approach places the new chiller capacity within a wider offering of cooling, power and data centre services.
LG plans to add chiller capacity at Pyeongtaek and Changwon in stages through the end of 2026, Korea JoongAng Daily reported.
