LG Electronics Will Build New Chiller Factory in Virginia
The electronics giant will construct its first U.S. chiller plant to support increasing demand for data center cooling solutions.
Updated on Oct. 13, 2026 in Manufacturing
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LG Electronics announced plans to build its first chiller manufacturing plant in Virginia on October 13, 2026. This new facility will produce heating, ventilation, air conditioning, and water heating products tailored for data centers across North America.
Why it matters
The investment supports LG Electronics' strategic goal to scale its production capacity for cooling technologies. It specifically addresses the cooling requirements for the significant portion of global AI data centers located in the North American market.
The new facility will focus on cooling solutions for a North American market that currently hosts more than half of the world's AI data centers. This effort will supplement existing operations at the company's appliance factory in Clarksville, Tennessee.
The players
LG Electronics
A global electronics and appliance manufacturer that currently operates a major production site in Clarksville, Tennessee.
The details
The upcoming factory will specifically produce chiller systems engineered to manage the intensive cooling demands of modern data centers. LG Electronics chose the Virginia location to leverage local infrastructure and existing workforce capabilities to accelerate its production footprint.
Timeline
October 13, 2026: LG Electronics announced plans for the new facility.
Market Landscape
This project follows the pattern set by the rapid expansion of North American AI data center capacity by localizing supply chains for critical cooling infrastructure. By establishing a dedicated domestic plant, LG Electronics is positioning itself to better compete with rivals by reducing logistical barriers for large-scale data center clients.
The establishment of this plant is expected to improve the availability of specialized cooling hardware for regional data centers and infrastructure projects. While retail customers will not see immediate changes, the domestic production could stabilize lead times for commercial HVAC clients throughout the state.
The takeaway
Companies are increasingly moving manufacturing closer to high-demand AI data hubs to simplify supply chains. This trend highlights a broader industry shift toward prioritizing regional proximity for critical infrastructure components.
Further reading
For more information on industrial development in the state, visit the Virginia Manufacturing section.
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