Long-term supply agreement signed with AIR Control Concept

First-half AIDC cooling orders top 600 billion won

Cumulative orders seen reaching trillions of won by year-end, accelerating 1 trillion won sales target

LG Electronics recently signed a long-term supply agreement with AIR Control Concept to provide cooling solutions for AI data centers totaling 5 gigawatts in capacity. Pictured from top left: Kwak Do-young, LG Electronics executive vice president and head of North America; Lee Jae-sung, president of LG Electronics' ES Business Division. From bottom left: Ahn Hyeok-seong, managing director of ES operations at LG Electronics USA; and Hayden Bland, president of AIR Control Concept. [LG Electronics]
LG Electronics recently signed a long-term supply agreement with AIR Control Concept to provide cooling solutions for AI data centers totaling 5 gigawatts in capacity. Pictured from top left: Kwak Do-young, LG Electronics executive vice president and head of North America; Lee Jae-sung, president of LG Electronics' ES Business Division. From bottom left: Ahn Hyeok-seong, managing director of ES operations at LG Electronics USA; and Hayden Bland, president of AIR Control Concept. [LG Electronics]

LG Electronics has secured a long-term supply agreement to provide cooling solutions for AI data centers totaling 5 gigawatts in North America, the world's largest AI data center market. The deal marks a significant step in the company's push to expand its global cooling solutions business, with AI data centers identified as a key growth engine.

LG Electronics' US subsidiary announced Monday that it had signed a long-term supply agreement with AIR Control Concept, a North American infrastructure platform company, to supply chillers for AI data centers. Under the contract, LG Electronics will sequentially deliver high-efficiency chillers and other cooling solutions to manage heat across AI data centers with a combined capacity of 5 GW.

According to market research firm Omdia, global data center power capacity is projected to grow from 226 GW in 2026 to 334 GW in 2027 — an increase of 108 GW. The 5 GW covered by LG Electronics' new contract represents roughly 5 percent of that projected increase.

AIR Control Concept is an infrastructure platform company operating primarily in the United States and Canada, handling everything from AI data center design and construction to public procurement and aftermarket services. It carries out large-scale projects through its data center subsidiary AIR Mission Critical and counts major global data center operators among its customers.

The deal is particularly significant because it is a long-term, large-volume arrangement rather than a one-off contract requiring separate bids for each project. "We passed the stringent technical and reliability standards of hyperscale data center projects," an LG Electronics official said, adding that the agreement firmly establishes the company as a "core infrastructure partner" within the North American AI data center supply chain while securing a stable revenue stream.

As AI data centers grow denser, the importance of cooling technology is rising. The proliferation of high-performance GPUs has driven a sharp increase in server power density and heat output, pushing conventional air-cooling systems to their limits. Liquid cooling — which uses chilled water to remove heat directly — is spreading rapidly as a result.

LG Electronics is now in discussions with AIR Control Concept about expanding the supply of coolant distribution units, a key component of liquid cooling systems. The company's broader strategy is to evolve into a total solutions provider spanning both air and liquid cooling — from chips to chillers — under what it calls its "Chip to Chiller" approach.

LG Electronics' orders for AIDC cooling solutions in the first half of this year already surpassed 600 billion won ($441 million), and the company expects cumulative orders to reach the multi-trillion won range by year-end. That trajectory is expected to pull forward the company's target of reaching 1 trillion won in annual chiller sales, originally set for the end of 2027.

LG Electronics began delivering products and completing installations this year on large North American AI data center projects won last year, and has also been building a track record in the Global South, including the Middle East and Indonesia. The company is also leveraging 60 years of heating, ventilation and air conditioning expertise accumulated through work on nuclear power plants and large hospitals.

To meet surging demand for AI data center cooling solutions, LG Electronics plans to invest about 150 billion won to build a new chiller factory in Virginia and expand production lines at its domestic factories in Pyeongtaek and Changwon.

"We will lead the global AI data center cooling market on the strength of LG Electronics' high-efficiency chillers, high-performance liquid cooling solutions and our differentiated technology, backed by rapidly growing experience supplying large-scale data centers," said ES Business Division President Lee Jae-sung. According to market research firm Fortune Business Insights, the global AI data center market is projected to grow at roughly 26 percent annually, reaching approximately $133.5 billion by 2034.


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