LG Electronics Secured AI Data Center Chiller Supply Deal
The agreement will support over 5 gigawatts of new North American AI data center capacity starting in 2026.
Updated on Oct. 5, 2026 in Data Centers
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LG Electronics has entered into a supply agreement with AIR Control Concepts to provide specialized chillers for North American AI data centers. The partnership targets projects with a combined capacity exceeding 5 gigawatts.
Why it matters
The deal signals a significant expansion for LG in the cooling market for AI infrastructure, which is projected to reach $133.5 billion by 2034. It reflects the increasing demand for high-capacity climate control systems needed to sustain the intensive heat generated by next-generation computing.
The systems leverage refrigerant-free cooling technology that utilizes outdoor air to reduce compressor load. This method targets a 30 percent reduction in annual energy consumption for data center cooling compared to traditional mechanical refrigeration cycles.
The players
LG Electronics
A global electronics conglomerate specializing in consumer appliances and enterprise HVAC systems.
AIR Control Concepts
An industrial systems provider partnering with LG for specialized North American data center projects.
The details
LG will supply advanced chillers, which are heat-transfer systems used to remove heat from a facility. These units incorporate refrigerant-free cooling, a mechanism where ambient outdoor air is passed through the system to regulate temperature without relying exclusively on chemical refrigerants. By integrating these systems with broader LG Group capabilities, the company aims to scale thermal management across large-scale server clusters.
Timeline
H1 2026: LG reported $428 million in data center cooling orders.
October 5, 2026: The supply agreement with AIR Control Concepts was announced.
2027: LG expects to hit its $680 million chiller business revenue target.
2034: The global AI data center market is projected to reach $133.5 billion.
The Tech Race
As the global AI data center market maintains a 26 percent annual growth rate, manufacturers are racing to optimize thermal efficiency for massive, high-density server farms. LG is positioning its integrated hardware to compete against legacy industrial cooling incumbents as energy management becomes the primary constraint on data center scaling.
While these systems are designed for industrial-scale facilities, their deployment aims to improve the energy efficiency of the data centers powering common AI services. The technology is scheduled to begin scaling across North American projects immediately following the October 2026 announcement.
The takeaway
The race to cool the next generation of AI compute is now heavily focused on energy-efficient, refrigerant-free hardware. Monitor LG's reported revenue in 2027 to see if the company hits its $680 million target as these 5 gigawatts of capacity come online.
Further reading
Explore more developments in large-scale infrastructure in our Data Centers section.
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