October 5, 2026

LG Electronics signs 5GW AI data center cooling deal

By:
Dallas Bond

LG Electronics has secured a long-term agreement to supply cooling solutions for AI data centers with a combined scale of 5 gigawatts (GW) in North America, expanding its role in the infrastructure needed to manage rising heat from high-performance computing.

LG Electronics USA announced on October 5 that it had recently signed the agreement with AIR Control Concept, a North American infrastructure platform company. LG Electronics will supply the equipment sequentially, including high-efficiency chillers designed to control heat.

The company expects the agreement to strengthen its position in the North American AI data center supply chain. Compared with one-off project orders, LG Electronics said a long-term commitment to large-volume supplies provides a more stable revenue base and demonstrates its ability to meet major data center projects’ technical and reliability requirements.

AIR Control Concept handles data center design and construction, public procurement and aftermarket services across North America, including the United States and Canada. Its data center subsidiary, AMC (AIR Mission Critical), participates in large-scale projects and counts major global data center operators among its clients.

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."

Cooling demand shifts as AI workloads grow

The agreement comes as increasingly powerful graphics processing units (GPUs) raise power density and heat output in AI data centers. Those changes make it harder for facilities to rely solely on air cooling, which circulates air to dissipate heat. Liquid cooling, which uses cool water to remove heat directly, is gaining prominence.

LG Electronics is expanding its "Chip to Chiller" total cooling solution, covering both air and liquid cooling. It is also discussing an expanded supply portfolio with AIR Control Concept that could include coolant distribution units (CDUs), key equipment for liquid cooling.

The scale of the deal reflects growing data center power requirements. Market research firm Omdia projects that global power capacity required for data centers will increase from 226GW in 2026 to 334GW in 2027, a rise of 108GW. LG Electronics’ 5GW order represents about 5% of that projected growth.

Orders build toward revenue target

LG Electronics’ AI data center cooling orders exceeded KRW 600 billion in value in the first half of this year. The company expects cumulative orders to reach several trillion won by the end of the year and anticipates reaching KRW 1 trillion in chiller business revenue ahead of its previously stated goal of the end of 2027.

The company began full-scale supply and installation this year for a large North American AI data center project awarded last year. It is also supplying cooling solutions to large data centers in the Global South, including the Middle East and Indonesia.

LG Electronics brings approximately 60 years of HVAC engineering experience to the business, including work in facilities requiring high reliability, such as nuclear power plants and large hospitals.

Market research firm Fortune Business Insights forecasts that the global AI data center market will grow at an average annual rate of about 26%, reaching USD 133.5 billion (approximately KRW 185 trillion) by 2034.

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."

Read the source

Keywords:
LG Electronics,AIDC,data center cooling,5GW,AIR Control Concept
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