LG Electronics secured a contract to provide cooling solutions for a 5+ gigawatt AI data center facility.

South Korea's LG Electronics said it signed a long-term agreement to supply cooling solutions for AI data centers with a combined capacity of more than 5 gigawatts in North America. The company's U.S. subsidiary and AIR Control Concepts, a U.S.-based infrastructure platform, completed the deal, with LG Electronics withholding financial terms and duration from disclosure.

The scale of this contract is substantial. Global data center power capacity is projected to reach 226 GW this year according to market consultant Omdia, meaning the capacity covered by LG Electronics' deal represents more than 2% of global capacity.

Under the agreement, LG Electronics will supply high-performance chillers over several years for large AI data centers across the United States and Canada. AIR Control Concepts partners with leading data center operators in carrying out these projects.

LG Electronics framed the win as validation of its competitive position in a critical market segment. "As heat management in AI data centers emerges as a major global priority, LG aims to be a major player in the global AI data center cooling market," said James Lee, LG Electronics President, in a statement. "We will achieve this through our differentiated technology, including our high-efficiency chillers, and our rapidly expanding experience in supplying leading big tech companies."

Hayden Bland, president of AIR Control Concepts, underscored the partnership's strategic value. "Data center operators are looking for partners who can deliver mission-critical reliability, capacity, and certainty at scale. Together with LG, we're building the technology, manufacturing capacity, and support infrastructure to meet that need," he said.

The market rewarded the announcement. LG Electronics' share price jumped 7.64% on the Seoul bourse the following day, while the benchmark KOSPI index edged down 0.89%.