LG Electronics said Monday that it has secured a long-term agreement to supply chillers for more than 5 gigawatts of AI data center capacity in North America, expanding its cooling business as demand for artificial intelligence infrastructure grows.
The agreement with AIR Control Concepts covers a multiyear supply program for data centers in the US and Canada. Its financial value and detailed delivery schedule were not disclosed.
AIR, headquartered in Norfolk, Virginia, operates a network of heating, ventilation and air conditioning, electrical, service and controls companies. It supports major data center projects and serves leading global operators.
LG said the agreement would provide a more stable pipeline of business beyond individual project bids and strengthen its position in North America’s data center supply chain.
Cooling has become a major infrastructure challenge, as increasingly powerful AI chips generate more heat. Data center operators are investing in systems that can handle higher power densities while limiting energy consumption.
LG’s air-cooled centrifugal chiller uses refrigerant free cooling technology, drawing on cool outdoor air to reduce the workload on compressors.
Free cooling is designed to save energy by using naturally cool air or water.
The company said internal simulations showed annual energy consumption about 30 percent below that of a waterside free cooling system. The simulation assumed a single unit operating at full cooling capacity under Seoul-area climate conditions; actual savings would vary by installation and operating conditions.
LG and AIR are also discussing expanding supplies to coolant distribution units, which regulate coolant flow and temperature in liquid-cooling systems. Those additional supplies have not been finalized.
The agreement adds to LG’s growing order book. Orders for AI data center cooling solutions exceeded 600 billion won in the first half, and the company expects to reach its annual chiller revenue target of 1 trillion won ahead of its original end-2027 deadline.
LG began supplying and installing cooling equipment this year for a major North American AI data center project secured last year. It is also expanding through data center projects in the Middle East and Indonesia.
“As heat management in AI data centers emerges as a major global priority, LG aims to be a major player in the global AIDC cooling market,” said James Lee, president of the LG Electronics ES Company.
AIR Control Concepts CEO Brad Hobbs said the agreement would support the company’s longer-term expansion.
“LG’s high-efficiency chiller technology gives us a proven platform we can deploy with confidence across our AI data center portfolio, and this agreement positions AIR to support our customers’ growth for years to come,” he said.
yeeun@heraldcorp.com