Multiyear 5GW Cooling Deal
LG Secures Multiyear 5GW Agreement to Cool North American AI Data Centers
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Key Points
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LG’s air-cooled centrifugal chiller uses refrigerant-free cooling, drawing on cool outdoor air to reduce compressor workload. The company’s simulations estimated annual energy use about 30% below a waterside free-cooling system, though the comparison assumed one unit operating at full capacity in Seoul-area conditions and actual savings would vary.
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LG recently became an official NVIDIA partner in the AI data center cooling solutions field, a move that could strengthen its standing in the sector.
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LG’s first-half AI data center cooling orders surpassed 600 billion won, and the company’s chiller-revenue target of 1 trillion won—originally set for the end of next year—may be reached earlier.
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Omdia forecasts global data center power capacity will rise by 108 GW, from 226 GW to 334 GW; the 5 GW covered by LG’s agreement is equivalent to about 5% of that projected increase.
LG Electronics has secured a long-term supply contract to cool AI data centers across North America with a combined capacity of 5 gigawatts, according to TechTimes. The deal with infrastructure firm AIR Control Concepts gives LG a guaranteed supplier role rather than competing for each project individually, strengthening its position in the booming data center cooling market as powerful AI chips demand more heat management Korea Herald. The contract's exact value and delivery timeline remain undisclosed, though Seoul Economic Daily reports its potential value in the trillions of won.
This win marks a major milestone for LG's AI cooling ambitions. Seoul Economic Daily reported that LG's AI data center cooling orders already exceeded 600 billion won in the first half of the year. The company recently became an official NVIDIA partner in AI data center cooling solutions, a credential that bolsters its standing in the sector.
How LG's Chiller Technology Works
LG's air-cooled centrifugal chiller uses refrigerant-free cooling by drawing cool outdoor air to reduce compressor workload. TechTimes notes this approach saves energy compared to traditional systems. LG's simulations estimate annual energy use about 30% lower than a waterside free-cooling system, though the comparison assumed one unit at full capacity in Seoul conditions—actual savings vary by location and load.
Revenue Target Could Hit Early
LG's chiller business is accelerating faster than expected. The company originally aimed to reach 1 trillion won in chiller revenue by the end of next year, but Seoul Economic Daily reports that milestone may arrive sooner. First-half orders of 600 billion won already represent 60% of the annual target, suggesting LG could hit the goal well ahead of schedule if current momentum holds.
5GW Represents Slice of Massive Expansion
Data center cooling demand is exploding globally. Market research firm Omdia forecasts global data center power capacity will surge 108 GW—from 226 GW to 334 GW. LG's 5-gigawatt contract covers about 5% of that projected increase, underscoring both the scale of the deal and the vastness of the opportunity ahead in AI infrastructure cooling.
Stock Market Reacts to Landmark Announcement
Investors cheered the news immediately. Worldnews reported that LG Electronics shares jumped over 6% in early trading on the day the contract was announced. The market's enthusiasm reflects confidence that LG has locked in a major, predictable revenue stream during a period of intense growth in AI data center construction across North America.
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