LG Electronics Signed North American Chiller Agreement
The deal will provide advanced cooling for AI data center projects with over 5 gigawatts of total capacity.
Updated on Oct. 5, 2026 in Data Centers
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LG Electronics has entered a supply agreement with AIR Control Concepts to provide specialized chillers for AI data centers across the United States and Canada. The partnership covers projects with a combined capacity exceeding 5 gigawatts.
Why it matters
This agreement strengthens LG Electronics position in the rapidly expanding AI data center sector as energy demands for high-performance computing continue to rise. It underscores the industry shift toward integrating advanced, energy-efficient cooling solutions to support infrastructure growth.
LG reported data center cooling orders exceeding $428 million during the first half of 2026. The company now expects to reach its $680 million annual revenue target for its chiller business ahead of the 2027 schedule.
The players
LG Electronics
A global electronics and appliances manufacturer that leverages six decades of HVAC engineering experience to provide industrial cooling solutions.
AIR Control Concepts
A company that has entered into a strategic supply partnership with LG Electronics to facilitate data center infrastructure projects in North America.
The details
The technology utilized in these chillers incorporates refrigerant-free cooling, which leverages outdoor air to reduce compressor loads and optimize energy efficiency. By utilizing its integrated HVAC engineering capabilities, LG aims to meet the intensive cooling requirements of modern data centers.
Timeline
The supply agreement was officially announced on October 5, 2026.
LG secured over $428 million in cooling solution orders during the first half of 2026.
The company aims to hit a $680 million annual revenue target for its chiller business by 2027.
The global AI data center market is projected to reach $133.5 billion by 2034.
The Tech Race
This deal aligns with the rapid expansion of AI infrastructure where cooling efficiency has become a critical competitive differentiator. It marks a shift from legacy cooling methods toward integrated, air-reliant systems designed to meet the massive thermal demands of modern data processing.
While the deal focuses on industrial-scale hardware, the increased efficiency of these chillers helps data centers maintain lower operational costs for AI services. Users may experience more reliable performance as infrastructure providers adopt advanced thermal management technologies.
The takeaway
Reliable cooling technology has become a cornerstone of the AI era as high-density computing generates unprecedented thermal loads. Companies that successfully implement refrigerant-free solutions gain a significant advantage in the race to manage power consumption in massive data environments.
Further reading
For more on how infrastructure providers are adapting to growing hardware demands, visit the Data Centers section.
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