LG Electronics is expanding its global chiller manufacturing capabilities with a new production facility in the U.S. and increased production capacity in South Korea, bolstering the company's ability to deliver cooling solutions for AI data centers (AIDCs).
Announced by Virginia Governor Abigail Spanberger, the new 350,000-square-foot facility, on a 43-acre site in Isle of Wight County, will produce air-cooled chillers for AIDCs, with production scheduled to begin in the first half of 2027.
LG's new Virginia facility aims to support a stable, responsive supply system for the rising chiller needs across North America, while serving as a strategic base for LG's regional expansion, according to Don Kwack, president and CEO for LG Electronics North America.
"This factory represents an important step in LG Electronics' strategy to expand production capacity for advanced cooling technologies and better serve the rapidly expanding customer base in North America. Virginia offers the workforce, location and infrastructure needed to support our long-term growth," said Kwack in a statement.
LG's decision to establish a facility in Virginia "is a reflection of their confidence in the Commonwealth and our longstanding position as a top state for business," said Spanberger in a statement. "Not only will this investment create more than 150 new jobs in the community, but these energy-efficient innovations will be key to meeting Virginia's growing energy demands and building a more sustainable future."
With more than half of the world's AIDCs located in North America, Ahn said the region represents a significant market opportunity, and Virginia is home to a large concentration of data centers operated by major technology companies. As AI adoption accelerates, AIDCs are becoming critical infrastructure for large-scale data processing and high-performance computing. "Their stable operation depends on effective heat management, making high-performance cooling solutions, including chillers, essential," said Ahn.
LG is also expanding its air-cooled chiller production lines in Pyeongtaek and Changwon, South Korea. The company is improving operational efficiency by adopting a conveyor-based production system designed for mass production. The system moves products through the production process on a single conveyor, enabling more efficient manufacturing and helping LG respond quickly to increased demand.
The company plans to invest a total of KRW 150 billion in its new U.S. facility and its factories in Pyeongtaek and Changwon. These investments will expand LG's chiller manufacturing capabilities across the United States and South Korea and support growing demand for air-cooled chillers.
