LG wins 5GW AI cooling deal in North America

LG Electronics has signed a long-term agreement to supply cooling equipment for more than 5 gigawatts of AI data center capacity in North America, marking a key step in its expansion into the data center infrastructure sector. The deal, with AIR Control Concepts, involves a multiyear supply program for data centers in the U.S. and Canada. While the financial value was not disclosed, industry estimates suggest the project could be worth between 2 to 3 trillion won. The agreement includes the supply of air-cooled centrifugal chillers that utilize refrigerant-free cooling technology. These systems draw on cool outdoor air to reduce compressor workload, offering energy efficiency improvements. Internal simulations show annual energy consumption about 30 percent lower than that of a waterside free cooling system, based on Seoul-area climate conditions. Actual savings will depend on specific installation and operational factors. LG and AIR are also exploring potential expansions to include coolant distribution units, which manage coolant flow and temperature in liquid-cooling systems. However, these additional supplies remain under discussion and have not yet been finalized. This contract builds on LG’s existing order book for AI data center cooling solutions, which surpassed 600 billion won in the first half of the year. The company anticipates reaching its annual chiller revenue target of 1 trillion won before the originally planned end-2027 deadline. LG has already begun supplying and installing cooling equipment for a major North American AI data center project secured last year. It is also expanding through data center initiatives in the Middle East and Indonesia. James Lee, president of LG Electronics ES Company, emphasized the importance of heat management in AI data centers as a global priority. “LG aims to be a major player in the global AIDC cooling market,” he stated. AIR Control Concepts CEO Brad Hobbs noted that LG’s high-efficiency chiller technology provides a reliable platform for deployment across AI data center portfolios. “This agreement positions AIR to support our customers’ growth for years to come,” he added.