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LG Electronics to Build First U.S. Chiller Factory in Virginia

LG Electronics is set to anchor its North American cooling supply chain with a new 350,000-square-foot production facility in Isle of Wight County, Virginia. The plant, which will manufacture air-cooled chillers specifically for the booming AI data center market, is slated to begin operations in the first half of 2027.

LG Electronics to Build First U.S. Chiller Factory in Virginia

The project represents a central component of a 150 billion KRW investment strategy that also includes expanding manufacturing lines in Pyeongtaek and Changwon, South Korea. By establishing a domestic footprint in Virginia, LG aims to shorten lead times for its "Chip-to-Chiller" cooling systems, which range from direct-to-chip cold plates to large-scale data center infrastructure. The site, announced by Governor Abigail Spanberger, is expected to create over 150 jobs.

North America currently houses more than half of the world's AI data centers, a footprint projected to grow significantly as high-performance computing demand surges. Chris Ahn, President of LG Electronics USA's Air Conditioning Technology division, noted that effective heat management is now a critical infrastructure requirement for hyperscalers. To support this, the company is integrating its HVAC expertise with broader energy and power management solutions. As part of this expansion, LG is deploying a new conveyor-based mass production system at its Korean sites to further increase output alongside the new U.S. capacity.

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