LG Electronics Establishes First U.S. Factory for AI Data Center Chillers

LG Electronics is expanding its global operations by establishing its first U.S. factory dedicated to producing chillers for AI data center cooling. This new facility, located in Virginia, will cover 350,000 square feet and is expected to begin production in the first half of 2027.

The decision to build this factory comes in response to the increasing demand for advanced cooling solutions in North America, particularly for AI data centers. Don Kwack, President & CEO of LG Electronics North America, emphasized the importance of this factory in supporting a stable supply system for chillers across the region.

Virginia Governor Abigail Spanberger highlighted that this investment will create over 150 new jobs and contribute to meeting the state’s growing energy demands. The facility is strategically positioned to leverage Virginia's workforce and infrastructure, making it an ideal location for LG's expansion.

In addition to the new U.S. factory, LG is also enhancing its production capabilities in South Korea, further solidifying its position as a comprehensive provider of cooling solutions. The company plans to invest a total of KRW 150 billion in both the U.S. and its Korean facilities, aiming to meet the rising global demand for air-cooled chillers.