LG Electronics Wins 5 GW U.S. AIDC Cooling Solutions Order, Signs Major Long-Term Contract

[Financial News] LG Electronics has won a major long-term supply contract for a total of 5 gigawatts (GW) in the United States, the largest market for AI data centers (AIDCs). The order accounts for about 5% of the 108 GW annual increase in power capacity required by data centers worldwide. LG Electronics plans to aggressively expand its global AIDC cooling solutions business.

According to industry sources on the 5th, LG Electronics' U.S. subsidiary recently signed a definitive long-term supply agreement for AIDC chillers with AIR Control Concept, a North American infrastructure platform company. Under the agreement, LG Electronics will supply high-efficiency chillers and other cooling solutions to manage heat at AIDCs with a total capacity of 5 GW, on a phased basis.
According to market research firm Omdia, the power capacity required by data centers worldwide is expected to increase by 108 GW, from 226 GW this year to 334 GW in 2027. The 5 GW order secured by LG Electronics represents about 5% of the annual increase, guaranteeing the company a large volume of business.
AIR, LG Electronics' key partner in the AIDC sector, is an infrastructure platform company that oversees the entire process for AIDCs in North America, from design and construction to public procurement and aftermarket services. Through its data center-focused subsidiary, AMC (AIR Mission Critical), the company carries out large-scale projects and has major data center operators worldwide as key customers.
LG Electronics' long-term contract with AIR is viewed as evidence that its AIDC cooling solutions have met the demanding technical and reliability standards required for hyperscale data center projects. The agreement is also expected to establish LG Electronics as a key infrastructure partner in the North American AIDC supply chain while securing stable revenue through long-term business.
The achievement is expected to lead to additional business opportunities.
LG Electronics and AIR are also discussing expanding the range of supplied products to include the Coolant Distribution Unit (CDU), a core liquid-cooling facility. To address heat management, the top issue in the AIDC sector, a hybrid approach that combines conventional air cooling, which circulates cold air, with water cooling (liquid cooling), which directly removes heat using cold water, is rapidly gaining traction. LG Electronics is expanding its portfolio as a total solution provider responsible for AIDC heat management, covering both air cooling and liquid cooling through its 'Chip to Chiller' solutions.
LG Electronics' cooling solutions business is growing rapidly alongside the AIDC market.
Orders for AIDC cooling solutions exceeded 600 billion won in the first half of this year. Cumulative orders worth several trillion won are expected by the end of the year. LG Electronics is also expected to reach its initial target of 1 trillion won in chiller business revenue earlier than planned, potentially by the end of next year.
LG Electronics aims to lead the global AIDC market as a total solution provider by leveraging its unrivaled cooling technologies and the group's integrated infrastructure solution capabilities under its 'One LG' strategy.
Lee Jaesung, president and head of LG Electronics' ES Business Division, emphasized, "LG Electronics will lead the global AIDC cooling market based on our differentiated technologies, including high-efficiency chillers and high-performance liquid-cooling solutions, as well as our rapidly expanding experience supplying large-scale data centers." Brad Hobbs, AIR's chief executive officer (CEO), said, "LG Electronics' high-efficiency chiller technology enables us to provide validated solutions as we build out our AI data center portfolio."
[email protected] Park So-hyun Reporter