WINDSOR, Virginia — LG Electronics is establishing its first U.S. chiller manufacturing facility in Virginia to meet growing demand for data center cooling across North America.

The 350,000-square-foot plant will be located on a 43-acre site in Isle of Wight County. Production of air-cooled chillers for artificial intelligence data centers is scheduled to begin in the first half of 2027.

The announcement was made by Virginia Gov. Abigail Spanberger. According to LG, the facility will strengthen its North American manufacturing capacity and support regional demand for advanced cooling equipment.

The company plans to invest a total of KRW 150 billion in the Virginia facility and production expansions at two existing factories in Pyeongtaek and Changwon, South Korea. The investments will increase LG’s manufacturing capacity for air-cooled chillers.

The South Korean facilities will adopt conveyor-based production systems designed to move products through manufacturing on a single conveyor. LG said the systems are intended to improve operational efficiency and help the company respond more quickly to demand.

The Virginia facility also is expected to create more than 150 jobs, according to Gov. Spanberger.

LG is expanding its broader data center cooling portfolio through a strategy it calls “Chip-to-Chiller.” The portfolio includes chillers, coolant distribution units (CDUs) and cold plates that remove heat directly from computer chips.

The company also offers direct-to-chip liquid cooling, which circulates coolant through cold plates to manage heat. LG is combining these technologies with cooling management systems, software and power infrastructure as part of its integrated data center solutions.

According to market research firm Omdia, global data center capacity is projected to increase from 226 gigawatts in 2026 to 420 gigawatts in 2030. North America is expected to account for 60% of the additional capacity.

LG said the Virginia factory will support its efforts to expand data center cooling projects in North America. The company is also pursuing integrated data center projects in Asia through its “One LG” strategy, which combines HVAC technologies with capabilities from other LG affiliates.

Chris Ahn, president of LG Electronics USA’s Air Conditioning Technology division, said the U.S.-manufactured chillers will support the company’s broader HVAC, water heating, and building controls portfolio.

The new plant expands LG’s U.S. manufacturing presence as demand grows for cooling systems used in data centers and high-performance computing applications.