LG Electronics Wins 5GW Long-Term AIDC Cooling Solutions Supply Contract in North America

Signed Long-Term Cooling Solutions Agreement with AIR Control Concept

LG Electronics Exceeds KRW 600 Billion in Orders in the First Half

Discussing Expansion into Additional Businesses, Including CDU Supply

LG Electronics has signed a large-scale, long-term supply agreement totaling 5 gigawatts (GW) in North America, the largest market for artificial intelligence data centers (AIDC). As power consumption at AI data centers rapidly increases, the company aims to aggressively target the global AIDC market by leveraging its cooling solutions business, which has emerged as a core infrastructure sector.

On October 5, LG Electronics USA announced that it had recently signed a long-term supply agreement (LTA) for chillers dedicated to AIDCs with AIR Control Concept, a North American infrastructure platform company.

Under the agreement, LG Electronics will sequentially supply cooling solutions, including high-efficiency chillers that control heat, to AIDCs with a combined scale of 5GW.

According to market research firm Omdia, the global power capacity required for data centers is projected to rise from 226GW in 2026 to 334GW in 2027, an increase of 108GW. The 5GW order awarded to LG Electronics is equivalent to about 5% of this projected growth in demand.

AIR Control Concept is a company responsible for various aspects of data center infrastructure across North America, including the United States and Canada, handling AIDC design and construction, public procurement, and aftermarket services. Through its subsidiary AMC (AIR Mission Critical), which specializes in data centers, the company is involved in large-scale projects and has secured major global data center operators as clients.

LG Electronics recently signed a long-term supply agreement (LTA) to provide AI data center cooling solutions with a total capacity of 5 gigawatts (GW) with the U.S. company AIR Control Concept. (From left to right in the top row) Doyoung Kwak, Vice President and Head of North America at LG Electronics; Jaesung Lee, President and Head of the Energy Solution Business Division at LG Electronics; (From left to right in the bottom row) Hyuksung Ahn, Executive Director in charge of Energy Solutions at LG Electronics USA; Hayden Bland, President of AIR Control Concept. LG Electronics.

LG Electronics expects that this long-term supply agreement will significantly strengthen its position in the North American AIDC supply chain. Unlike one-off project orders, securing a contract to supply large volumes over a long period not only creates a stable revenue base but also demonstrates the company’s competitiveness as an infrastructure partner that meets the technical and reliability standards required for major data center projects.

Cooling methods are changing rapidly as more high-performance graphics processing units (GPUs) are deployed in AI data centers. The increasing power density and heat output of GPUs make it difficult to rely solely on the existing air-cooling method, which circulates air to dissipate heat. As a result, liquid cooling technology—which removes heat directly using cool water—is gaining prominence as the core cooling method for AIDCs.

In response, LG Electronics is expanding its business with a “Chip to Chiller” total cooling solution that encompasses both air and liquid cooling. The company is also discussing ways to broaden its supply portfolio with AIR Control Concept by adding products such as coolant distribution units (CDUs), which are key equipment for liquid cooling.

LG Electronics is further strengthening its foundation for the cooling solutions business. The company has accumulated approximately 60 years of experience in HVAC (heating, ventilation, and air conditioning) engineering, particularly in facilities where high reliability is essential, such as nuclear power plants and large hospitals.

For a large North American AIDC project awarded last year, LG Electronics began full-scale supply and installation of cooling solutions this year. The company is also expanding its portfolio by supplying cooling solutions to large data centers in the Global South, including the Middle East and Indonesia. LG Electronics plans to leverage its advanced cooling technology and the collective capabilities of the LG Group with its “One LG” integrated infrastructure solution, aiming to become a total solutions provider that covers not only AIDC cooling but overall infrastructure needs.

According to market research firm Fortune Business Insights, the global AIDC market is expected to grow at an average annual rate of about 26%, reaching USD 133.5 billion (approximately KRW 185 trillion) by 2034.

In line with market growth, orders for LG Electronics’ cooling solutions are also rapidly increasing. In the first half of this year, the company’s order value for AIDC cooling solutions exceeded KRW 600 billion, and its cumulative order volume is expected to reach several trillion won by the end of the year. Accordingly, LG Electronics also anticipates that it will achieve KRW 1 trillion in chiller business revenue ahead of its previously stated goal of the end of 2027.

Brad Hobbs, CEO of AIR Control Concept, said, “LG Electronics’ high-efficiency chiller technology has enabled us to provide proven solutions as we build our AI data center portfolio.”

Jaesung Lee, President and Head of Eco Solution (ES) Division at LG Electronics, stated, “Based on our differentiated technologies—including high-efficiency chillers and high-performance liquid cooling solutions—and our rapidly expanding experience of supplying to large-scale data centers, we plan to lead the global AIDC cooling market.”

This content was produced with the assistance of AI translation services.