LG Electronics’ AI Data Center Cooling Orders Top 3 Trillion Won

LG Electronics said on the 28th that cumulative orders for its AI data center cooling solutions had exceeded 3 trillion won through the third quarter of 2026. Orders totaled 600 billion won in the first half, then grew after the company signed a long-term supply agreement for 5 gigawatts (GW) with North American AI data center infrastructure firm AIR Control Concept. LG is also seeking opportunities to supply cooling solutions for Microsoft’s global data center expansion. The company said a substantial share of its orders comes from long-term contracts to supply data centers over several years, which it described as a stable revenue base.

LG is investing a total of 220 billion won to meet higher demand and expand chiller production capacity. It is building an air-cooled chiller plant for AI data centers in Windsor, Virginia, with production scheduled to begin in the first half of 2027. At its Pyeongtaek and Changwon plants in South Korea, it is adding air-cooled chiller production lines and upgrading existing equipment. Chillers produce large volumes of cold water to lower data center temperatures; the resulting cooling water is used in both air and liquid cooling. LG said it is also increasing research and development spending and pursuing a growth model in which revenue from long-term supply contracts funds further investment.

The ES division, which oversees AI data center cooling, recorded third-quarter 2026 revenue of 2.1736 trillion won and operating profit of 87.2 billion won. Profitability edged down from the same quarter a year earlier, partly because of investment in new production facilities. The division aims to exceed 10 trillion won in full-year sales next year, citing its expanded order book. It recorded 9.323 trillion won in sales last year, its first year after launch. If it meets its target, it will become LG Electronics’ second division to surpass 10 trillion won in annual sales, following the VS division, which handles vehicle components, in 2023.

LG is developing and commercializing Cooling Distribution Units (CDUs), liquid-cooling equipment that complements its existing chillers. After a 600-kilowatt (kW) model, its 1-megawatt (MW) and 2.6 MW models also received approval under NVIDIA’s quality standards. The company said it has secured large-capacity liquid-cooling technology to control heat from high-density AI servers and plans to use it to pursue more data center project orders. LG Electronics Vice Chairman and Chief Financial Officer Chang-tae Kim said planned order growth was progressing smoothly and that the company would expand investment in production capacity in stages as orders increase. He said LG would lead development of large-capacity CDUs and accelerate the business, including by securing projects at scale.

LG Electronics said on the 28th that cumulative orders for its AI data center cooling solutions had exceeded 3 trillion won through the third quarter of 2026. Orders totaled 600 billion won in the first half, then grew after the company signed a long-term supply agreement for 5 gigawatts (GW) with North American AI data center infrastructure firm AIR Control Concept. LG is also seeking opportunities to supply cooling solutions for Microsoft’s global data center expansion. The company said a substantial share of its orders comes from long-term contracts to supply data centers over several years, which it described as a stable revenue base.

LG is investing a total of 220 billion won to meet higher demand and expand chiller production capacity. It is building an air-cooled chiller plant for AI data centers in Windsor, Virginia, with production scheduled to begin in the first half of 2027. At its Pyeongtaek and Changwon plants in South Korea, it is adding air-cooled chiller production lines and upgrading existing equipment. Chillers produce large volumes of cold water to lower data center temperatures; the resulting cooling water is used in both air and liquid cooling. LG said it is also increasing research and development spending and pursuing a growth model in which revenue from long-term supply contracts funds further investment.

The ES division, which oversees AI data center cooling, recorded third-quarter 2026 revenue of 2.1736 trillion won and operating profit of 87.2 billion won. Profitability edged down from the same quarter a year earlier, partly because of investment in new production facilities. The division aims to exceed 10 trillion won in full-year sales next year, citing its expanded order book. It recorded 9.323 trillion won in sales last year, its first year after launch. If it meets its target, it will become LG Electronics’ second division to surpass 10 trillion won in annual sales, following the VS division, which handles vehicle components, in 2023.

LG is developing and commercializing Cooling Distribution Units (CDUs), liquid-cooling equipment that complements its existing chillers. After a 600-kilowatt (kW) model, its 1-megawatt (MW) and 2.6 MW models also received approval under NVIDIA’s quality standards. The company said it has secured large-capacity liquid-cooling technology to control heat from high-density AI servers and plans to use it to pursue more data center project orders. LG Electronics Vice Chairman and Chief Financial Officer Chang-tae Kim said planned order growth was progressing smoothly and that the company would expand investment in production capacity in stages as orders increase. He said LG would lead development of large-capacity CDUs and accelerate the business, including by securing projects at scale.