Cooling

LG Establishes First U.S. Factory for Chillers for AI Data Center Cooling

October 01, 2026
New Virginia Plant and Expanded Production in South Korea Strengthen Company’s Ability to Meet Growing Demand for Advanced Cooling Solutions
  • LG Electronics is establishing a new facility in Virginia to help the company respond quickly to growing chiller demand across North America.
  • The new U.S. factory is part of the company’s growing investment in global chiller production, which also includes expansion of two existing facilities in South Korea.
  • Through its “One LG” approach, LG is expanding integrated AI data center solutions from chillers and Direct-to-Chip cooling to energy and data center infrastructure.

LG Electronics is expanding its global chiller manufacturing capabilities with a new production facility in the United States and increased production capacity in South Korea, bolstering the company’s ability to deliver end-to-end cooling solutions for AI data centers (AIDCs), while LG’s growing liquid cooling technologies strengthen the company’s position as a comprehensive “Chip-to-Chiller” solutions provider.

LG is establishing its first U.S. chiller factory in Virginia. Announced by Governor Abigail Spanberger, the new 350,000-square-foot state-of-the-art facility, on a 43-acre site in Isle of Wight County, will produce air-cooled chillers for AIDCs, with production scheduled to begin in the first half of 2027.

LG’s new Virginia facility aims to support a stable, responsive supply system for the rising chiller needs across North America, while serving as a strategic base for LG’s regional expansion, according to Don Kwack, President & CEO, LG Electronics North America.

Addressing Strong North American Demand for AIDC Chillers

“This factory represents an important step in LG Electronics’ strategy to expand production capacity for advanced cooling technologies and better serve the rapidly expanding customer base in North America. Virginia offers the workforce, location and infrastructure needed to support our long-term growth,” Kwack said.

LG’s decision to establish a state-of-the-art facility in Virginia “is a reflection of their confidence in the Commonwealth and our longstanding position as a top state for business,” Governor Spanberger said. “Not only will this investment create more than 150 new jobs in the community, but these energy-efficient innovations will be key to meeting Virginia’s growing energy demands and building a more sustainable future.”

Virginia Secretary of Commerce and Trade Carrie Chenery, said, “Coupled with access to The Port of Virginia and key road and rail networks, LG has positioned itself to rapidly respond to critical HVAC demand across the county. With our robust talent pipeline and top-ranked workforce training programs, Virginia is the ideal place for LG to establish a highly skilled, quickly scaled presence.”

“With our first chiller plant in the United States, LG is addressing the growing need for advanced cooling solutions for data centers across the country,” Chris Ahn, President of LG Electronics USA’s Air Conditioning Technology division, said. “Chillers produced in Virginia also will support LG’s role as a total HVAC solutions provider offering U.S. customers a broad portfolio of heating, ventilation, air conditioning and water heating products and building controls.”

With more than half of the world’s AIDCs located in North America, Ahn said the region represents a significant market opportunity, and Virginia is home to a large concentration of data centers operated by major technology companies. As AI adoption accelerates, AIDCs are becoming critical infrastructure for large-scale data processing and high-performance computing. “Their stable operation depends on effective heat management, making high-performance cooling solutions, including chillers, essential,” said Ahn.

Expanding Production at Korean Facilities

 LG is also expanding its air-cooled chiller production lines in Pyeongtaek and Changwon, South Korea. The company is improving operational efficiency by adopting a conveyor-based production system designed for mass production. The system moves products through the production process on a single conveyor, enabling more efficient manufacturing and helping LG respond quickly to increased demand.

The company plans to invest a total of KRW 150 billion in its new U.S. facility and its factories in Pyeongtaek and Changwon. These investments will expand LG’s chiller manufacturing capabilities across the United States and South Korea and support growing demand for air-cooled chillers.

Advancing Integrated Chip-to-Chiller Cooling Solutions

 Alongside the new U.S. facility and Korean production expansions, LG is broadening its AIDC thermal management business through its global Chip-to-Chiller solution strategy. The portfolio includes chillers, Coolant Distribution Units (CDUs) and cold plates that absorb heat directly from chips.

According to global market research firm Omdia, global data center capacity is projected to grow from 226 GW in 2026 to 420 GW in 2030, an increase of 194 GW, with 60 percent of the additional capacity expected to be concentrated in North America. To address the growing demand, the company’s Direct-to-Chip liquid cooling solution circulates coolant through cold plates, complementing its existing air-cooling offerings. Combined with cooling management systems, software and power infrastructure, these technologies are designed to improve energy efficiency and data-processingperformance.

Building on these capabilities, LG is pursuing additional AIDC projects in North America through its relationships with leading hyperscalers and big tech companies. In Asia, LG is applying its “One LG” strategy by combining heating, ventilation and air conditioning technologies with battery solutions and data center design, build and operation capabilities from other LG affiliates. LG is also applying this integrated approach to Sinar Mas Group’s hyperscale AIDC project in Jakarta, Indonesia.

QUOTES

FEDERAL, STATE AND LOCAL OFFICALS WELCOME LG ELECTRONICS TO VIRGINIA

“I am proud to see a global leader like LG choose Isle of Wight as the site for this more than $60 million investment in Virginia,” said Governor Abigail Spanberger. “Their decision to establish a state-of-the-art facility in Hampton Roads is a reflection of their confidence in the Commonwealth and our longstanding position as a top state for busi-ness. Not only will this investment create more than 150 new jobs in the community, but these energy-efficient innovations will be key to meeting Virginia’s growing energy de-mands and building a more sustainable future.”
“With our robust talent pipeline and top-ranked workforce training programs, Virginia is the ideal place for LG to establish a highly skilled, quickly scaled presence,” said Secre-tary of Commerce and Trade Carrie Chenery. “Coupled with access to The Port of Virginia and key road and rail networks, LG has positioned itself to rapidly respond to critical HVAC demand across the county. I look forward to a continued partnership with LG, local and regional partners, and stakeholders across the Commonwealth to support this exciting investment.”
“This investment by LG Electronics is great news for Hampton Roads and another vote of confidence in Virginia’s world-class workforce, talent pipeline, and business environment. It will create good-paying jobs, strengthen the region’s manufacturing base, and help meet the Commonwealth’s growing energy needs,” said U.S. Senator Mark Warner. “I look forward to working with LG Electronics as well as local and state partners to support this major investment.”
“LG’s investment in Hampton Roads is more evidence of what we already know: that Virginia is a hub for innovation and a great place to do business,” said U.S. Senator Tim Kaine. “I am excited that LG has chosen to bring this investment—and the jobs it will create—to the Commonwealth, and I will keep doing all I can on the federal level to sup-port Virginia’s economy.”
“Congratulations to LG Electronics on their investment in Isle of Wight County,” said Hampton Roads Alliance President and CEO Doug Smith. “Their commitment to Hampton Roads reflects the region’s strength as a logistics hub and was enabled by our large and skilled workforce. The Alliance team is eager to continue working with LG Electronics to support their success in the region.”
“We are thrilled to welcome LG Electronics’ first chiller plant in the United States to Shirley T. Holland Intermodal Park,” said Isle of Wight County Board of Supervisors Chairman Rudolph Jefferson. “This announcement validates the investments made by both the County and the Economic Development Authority to prepare the park for new businesses. We appreciate the collaboration among the Commonwealth of Virginia, The Port of Virginia, the Hampton Roads Alliance, Hampton Roads Workforce Council, W. M. Jordan Company, and LG Electronics to bring new jobs and significant capital in-vestment to the community.”
“We are pleased to welcome LG Electronics’ HVAC division to Isle of Wight County and to Virginia,” said Sarah McCoy, CEO and Executive Director, Virginia Port Author-ity. “This significant investment reinforces Virginia’s position as a premier destination for global manufacturing and international trade, bringing world-class production to the Commonwealth while strengthening connections to markets around the globe. We look forward to partnering with LG Electronics as they build upon this investment and expand their global reach from Virginia.”
“I’m excited to welcome LG Electronics to Isle of Wight County,” said State Senator Emily Jordan.  “This investment is not only going to bring new jobs to our region but will help meet the growing demand for HVAC solutions and digital infrastructure cooling needs. It is an innovative step toward answering the needs for energy conservation. I am proud to welcome LG Electronics to our community and wish them continued success.”
“LG’s investment in Isle of Wight is a success story we can all celebrate,” said Virginia Delegate Nadarius Clark. “This investment will bring good jobs to our community, grow our economy, and create the foundation for families to thrive and build a brighter future. I look forward to continuing to work with Governor Spanberger and our local partners to attract new businesses, strengthen our workforce, and expand economic op-portunities for Virginians across Hampton Roads.”