LG Electronics Makes a Big Bet on AI Data Center Cooling, to Build a Chiller Plant in the U.S.
TECHWORLD ·
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LG Electronics will build a chiller production plant in Windsor, Virginia, to target the AI data center cooling solutions market.
The new plant is aimed at starting production in the first half of next year, with a total floor area of 32,000 square meters and a site area of 170,000 square meters.
LG Electronics plans to establish new air-cooled chiller production lines at its Pyeongtaek and Changwon plants and upgrade production facilities, expanding them gradually by the end of this year.
LG Electronics said on the 1st that it will build a new chiller production plant in the United States and expand its domestic production lines to accelerate its push into the AI data center cooling solutions market.
LG Electronics will build a chiller production plant in Windsor, Virginia. The target start of production is the first half of next year. The new plant will have a total floor area of 32,000 square meters and a site area of 170,000 square meters. It will produce air-cooled chillers for primary supply to AI data centers.
A chiller is a cooling system that produces large quantities of cold water. It is used in HVAC for data centers, large buildings, commercial facilities and factories. In data centers, chilled water produced by chillers is used for air cooling and liquid cooling. In data centers, chillers are a core cooling system.
LG Electronics plans to use the U.S. plant as a production base for the North American market, where data centers are concentrated. By producing locally, the company aims to speed up supply to North American data center customers and strengthen supply stability.
Along with building the U.S. plant, LG Electronics will also expand its domestic chiller production capacity. The company plans to establish new air-cooled chiller production lines at its Pyeongtaek and Changwon plants and upgrade production equipment there. The total investment for the new U.S. plant, expanded domestic production lines and upgraded production facilities is around KRW 150 billion.
The domestic production lines will introduce a flow-line production method based on integrated conveyors linking the first and final processes. LG Electronics said it plans to improve productivity through the introduction of flow lines and respond to rising chiller demand. The domestic production lines in Pyeongtaek and Changwon are expected to be expanded gradually by the end of this year, and the company also plans to establish a system for operating multiple production lines simultaneously.
LG Electronics is also expanding its global production bases in parallel. It is also strengthening its AI data center cooling solutions portfolio. The company has secured a 'chip to chiller' solution that covers chillers, CDU and cold plates, encompassing the main components of AI data center thermal management.
As AI data centers equipped with high-density CPU and GPU increase, the need to stably manage the high heat generated by servers is also growing. Accordingly, the importance of cooling technology is also rising. In line with this demand, LG Electronics is working to strengthen cooling solutions spanning chillers, CDU and cold plates.
LG Electronics is pursuing a strategy in the AI data center market of combining cooling equipment with energy-efficiency software and power infrastructure solutions to provide customers with total solutions. Through this, the company aims to broaden its supply scope to AI data center customers.
In North America, the company will strengthen its network with hyperscale data center operators and big tech companies based on the competitiveness of its cooling solutions, including chillers and CDU, and will seek to expand project orders. In Asia, it is pursuing a strategy to expand opportunities to win data center projects by leveraging the business capabilities of One LG.
LG Electronics cited the supply of One LG solutions to a hyperscale AI data center under construction in Jakarta by Indonesia's Sinar Mas Group as an example of this strategy. One LG solutions combine LG Electronics' HVAC technology, LG Energy Solution's battery solutions and LG CNS's data center design, build and operate (DBO) capabilities, with the aim of expanding business opportunities.
Lee Jae-sung, head of LG Electronics' ES Business Division, said the company will continue strengthening its stable supply capabilities in cooling solutions for core AI data center infrastructure and actively target the rapidly growing market demand.
Source: TECHWORLD · Park Gyu-chan
Original: https://www.epnc.co.kr/news/articleView.html?idxno=407616
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Source: TECHWORLD
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