LG Electronics Plans Virginia Chiller Plant for AI Data Centers, Targeting H1 2027 Start

LG Electronics is planning a manufacturing plant in Windsor, Virginia, to produce chilled-water chillers for AI data centers. The company is targeting the first half of 2027 for the facility to begin operations; the plant has not been confirmed as operational.

The Virginia project is being developed alongside planned production-line expansions in Pyeongtaek and Changwon, South Korea. LG has identified KRW 150 billion as the total planned investment across the new US plant and the two Korean line expansions. No allocation of that investment among the three sites has been disclosed.

For North American operators and developers, the project could bring a portion of critical cooling-equipment production closer to a major data-center market. If executed on schedule, local manufacturing may shorten delivery times and strengthen supplier capacity for larger AI deployments, where cooling can constrain infrastructure delivery.

LG has also signed a long-term agreement with Air Control Concept for cooling solutions supporting data centers with a combined 5 GW of capacity. The 5 GW figure refers to the power capacity of the data centers supported by the cooling solutions, rather than contract value, equipment output, installed capacity, or manufacturing capacity.

The company reported that orders for AI data-center cooling solutions exceeded KRW 600 billion in the first half of the year. That order figure indicates demand for AI-focused thermal infrastructure, although it does not establish deliveries, revenue recognition, or the volume of equipment to be supplied.

The planned Virginia facility and Korean production expansions point to intensifying competition among data-center cooling suppliers on delivery speed, manufacturing availability, and execution of large customized orders. The available information does not establish the commercial value or equipment volume associated with the 5 GW Air Control Concept agreement.