AIR Partnership
LG Electronics secured a long-term supply agreement for AI data center cooling with AIR Control Concepts to supply advanced chillers across North America. The deal establishes a multi-year equipment supply program supporting hyperscale facilities with more than 5GW of total power capacity in the United States and Canada.
Expansion in AI Data Center Cooling Infrastructure
Under the contract, LG Electronics will deliver specialized cooling equipment to mega-scale infrastructure projects managed by AIR Control Concepts. The customer base includes major global data center operators seeking reliable thermal management systems. Demand for power-efficient thermal technology continues to rise alongside increasing computational workloads in artificial intelligence facilities.
The agreement focuses on the deployment of the LG Air-Cooled Centrifugal Chiller. This system uses refrigerant free-cooling technology, which captures cool outdoor air to reduce compressor workloads. LG internal simulations indicate that refrigerant free-cooling can consume about 30 percent less energy each year compared to conventional hydronic waterside systems.
Technical Capabilities and Operational Background
The engineering background behind the thermal management units spans six decades of work in high-demand environments. LG has built systems for nuclear power facilities and large hospitals prior to entering modern hyperscale data center projects. In addition to expanding across North America, the company supplies cooling hardware for large-scale data center facilities in Indonesia and the Middle East.
“As heat management in AI data centers emerges as a major global priority, LG aims to be a major player in the global AIDC cooling market. We will achieve this through our differentiated technology, including our high-efficiency chillers, and our rapidly expanding experience in supplying leading big tech companies.”
James Lee, President of LG Electronics ES Company
Financial Projections and Market Trajectory
The commercial sector for data facility temperature regulation is undergoing notable expansion. Market research firm Fortune Business Insights estimates that the global market will expand by 26 percent annually to reach USD 133.5 billion by 2034. During the second quarter of 2026, LG reported that orders for specialized data center equipment surpassed USD 428 million in the first half of the year.
Company executives expect cumulative orders in this division to reach several billion dollars by the close of the calendar year. Furthermore, the business is projected to fulfill its 2027 annual chiller revenue target of approximately USD 680 million ahead of the initial schedule.
“Data center cooling represents a key pillar of LG’s global growth strategy, and this major supply agreement with AIR marks an inflection point for LG’s North American chiller business.”
Don Kwack, CEO of LG Electronics North America
Future Operations and Industry Outlook
Operators of large-scale computational hubs continue to seek long-term supply arrangements to keep pace with facility development timelines. The collaboration with AIR Control Concepts provides the logistical depth required to commission mission-critical thermal hardware on tight schedules. Reliable AI data center cooling remains essential as facilities scale hardware density to meet future enterprise software demands.
