LG Electronics has entered into a long-term supply contract with AIR Control Concepts, a worldwide platform for businesses focused on heating, ventilation and air conditioning (HVAC), electrical, service, and controls, to supply advanced chillers for data centers in the US and Canada, the company announced on Monday.
The agreement includes extensive artificial intelligence (AI) data center initiatives with a total capacity exceeding 5 gigawatts in North America, bolstering LG's stance in the fast-expanding AI data center cooling sector.
AIR manages extensive infrastructure initiatives in key North American data center locations and caters to prominent global data center operators.
According to the agreement, LG will provide sophisticated chillers for AIR's data center initiatives. The Air-Cooled Centrifugal Chiller for AI data centers features refrigerant-free cooling technology that utilizes outdoor air to lessen the cooling burden on compressors.
LG's internal simulations indicate that refrigerant-free cooling may use around 30 percent less energy each year compared to waterside free cooling.
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LG stated that the deal demonstrates AIR's trust in its cooling technology and dependability for hyperscale data center initiatives. The collaboration extends beyond single project proposals, establishing LG as a vital cooling infrastructure provider for AIR's expanding AI data center portfolio.
LG is broadening its data center cooling operations internationally as the need for thermal management systems increases with the swift growth of AI infrastructure.
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The firm possesses sixty years of expertise in HVAC engineering within highly reliable environments, such as nuclear power plants and major hospitals. It has recently provided cooling solutions to large-scale data centers in North America and is seeking data center projects in Indonesia and the Middle East.
LG is utilizing the wider capabilities of the LG Group to offer comprehensive cooling solutions as it aims to grow its data center business in the medium to long term.
The worldwide AI data center market is projected to expand at an annual rate of approximately 26 percent, reaching $133.5 billion by 2034, accorging to reports.
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In its second-quarter 2026 earnings report, LG stated that data center cooling solution orders exceeded $428 million during the first half of the year. The company anticipates achieving its chiller business revenue goal of around $680 million for 2027 sooner than planned.