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LG Electronics Signs Cooling Agreement for AI Data-Center Projects Exceeding 5 GW

LG Electronics USA will supply chillers through AIR Control Concepts for North American AI data-center projects exceeding 5 GW of capacity. The figure is project capacity, not contract value or power supplied by LG.
From TheFinanceBase Team3 min to read
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LG Electronics USA has signed a long-term supply agreement with AIR Control Concepts to provide chillers for AI data-center projects in the United States and Canada that together exceed 5 gigawatts (GW) of capacity. The 5 GW figure describes the capacity of the projects the agreement is intended to support—not the agreement’s price or 5 GW of power supplied by LG. The companies have not disclosed the contract value, customer names, duration, or delivery schedule.

What the agreement covers

Announced on October 5, 2026, the agreement brings together LG Electronics USA and AIR Control Concepts (AIR) in a long-term, sequential supply program for data-center cooling equipment. LG identifies advanced chillers, including its air-cooled centrifugal chiller, as core equipment for the projects. The announcements do not specify how the more-than-5-GW project capacity is divided among sites or customers. LG’s U.S. announcement and its global English release describe the capacity as projects supported by the agreement.

A Korean-language release characterizes the arrangement as a 5 GW supply contract, but the more precise description in the English releases is that LG’s equipment will support projects exceeding 5 GW. LG’s Korean announcement also reports the agreement. None of the releases discloses a financial contract value.

Who is AIR Control Concepts?

LG describes AIR as a platform of HVAC, electrical, service, and controls companies operating across major North American data-center hubs and serving global data-center operators. AIR CEO Brad Hobbs said the partnership would let AIR deploy LG chiller technology across its AI data-center portfolio. The announcement does not name the operators or individual projects.

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How LG says its cooling technology works

LG’s air-cooled centrifugal chiller uses refrigerant free-cooling: when outdoor conditions allow, the system uses cool outdoor air to reduce the compressor’s cooling load. LG’s product description also highlights an oil-free magnetic-bearing compressor and modular design. These describe product features, not independently verified performance for the AIR projects. LG’s product announcement provides details about the chiller.

What the 30% energy comparison means

LG says refrigerant free-cooling can use approximately 30% less energy annually than waterside (hydronic) free-cooling. That comparison comes from LG’s internal simulation, not a third-party test reported in the announcements. LG modeled one 1,750 kW unit operating at 100% cooling capacity under Seoul metropolitan climate conditions. The simulation estimated annual consumption of 1,479,655 kWh for hydronic free-cooling and 1,044,824 kWh for refrigerant free-cooling. LG cautions that actual consumption varies with installation and operating conditions, so the modeled difference should not be treated as a guaranteed saving for a particular data center.

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What the 5 GW figure does—and does not—tell you

Data-center capacity describes the projects’ scale; it is not the amount of electricity LG will supply, nor the value of the chiller agreement. The releases do not provide a contract price or enough project-level detail to calculate one. They also leave several practical questions unanswered:

  • How long the supply agreement runs and when equipment deliveries begin.
  • Which operators and sites will receive chillers.
  • How the supported capacity is allocated among individual projects.

LG’s data-center cooling business context

LG reported more than $428 million in data-center cooling orders during the first half of 2026 in its U.S. announcement. The company also said it expected orders to reach several billion dollars by year-end and that its approximately $680 million (KRW 1 trillion) chiller-business revenue target for 2027 could be reached ahead of schedule. These are company-reported orders and forward-looking expectations, not the value or guaranteed revenue from the AIR agreement. LG’s release sets out those figures.

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For broader market context, LG Korea cited Omdia forecasts of global data-center power capacity reaching 226 GW in 2026 and 334 GW in 2027, and a Fortune Business Insights forecast of about 26% annual growth in the global AI data-center market to $133.5 billion by 2034. Those are third-party forecasts as cited by LG, not measurements of this agreement or evidence of LG’s future market share. LG Korea’s announcement attributes the forecasts to those firms.

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What procurement teams would need to compare

The announcement does not provide competitor data or establish a ranked alternative, so it cannot support a brand comparison. Buyers evaluating data-center cooling systems would need like-for-like information on:

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  • Cooling capacity and annual energy use under the same climate, load, and operating assumptions.
  • Reliability, service coverage, and recovery procedures after an interruption.
  • Installation and commissioning requirements, plus modularity for planned expansion.
  • Whole-life operating costs, rather than a single modeled efficiency comparison.

In a separate July 2026 announcement, LG said NVIDIA certified its 600 kW coolant distribution unit (CDU), and described a portfolio that also includes cold plates. That is broader portfolio context only: the AIR agreement announcement does not say the CDU, cold plates, or NVIDIA certification are part of this supply program. LG’s CDU announcement covers that separate development.

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