AIR AND LG SUPPLY AGREEMENT AIMS TO ADVANCE AI DATA CENTER COOLING BUSINESS IN NORTH AMERICA

Companies Strengthen Position in Data Center Market Through Long-Term
Chiller Partnership Supporting More Than 5GW of AI Data Center Capacity

News Summary

• LG Electronics has secured a long-term supply agreement with AIR Control Concepts to provide advanced cooling solutions for AI data centers in North America.
• The agreement supports a large-scale, multi-year chiller supply program supporting data centers with more than 5GW of capacity.
• This milestone reflects AIR's confidence in LG's cooling technologies to meet the demanding standards required for hyperscale data center infrastructure, positioning LG as a key supplier in this market.
• For AIR, the partnership reinforces its position as one of North America's fastest-growing AI data center infrastructure platforms.

NORFOLK, Va., Oct. 5, 2026 /PRNewswire/ -- LG Electronics USA has signed a major supply agreement with AIR Control Concepts (AIR), the largest global platform of leading HVAC, electrical, service, and controls companies, to provide advanced chillers for data centers in the United States and Canada. The long-term contract builds on AIR's role as a leading AI data center (AIDC) platform provider and accelerates LG's expansion into the global AIDC cooling market, addressing the rapidly growing demand for high-efficiency thermal management solutions in AI infrastructure.

Securing AI Infrastructure Partnership with Leading Data Center Developers
Under the agreement, LG will supply advanced chillers supporting large-scale AI data center projects exceeding 5GW of capacity in North America. AIR oversees mega-scale infrastructure projects across major North American data center hubs, serving leading global data center operators as key customers.

The LG Air-Cooled Centrifugal Chiller designed for AI data centers incorporates refrigerant free-cooling technology, using cool outdoor air to lower the compressor cooling load. Based on LG's internal simulation, refrigerant free-cooling can consume approximately 30 percent less energy annually than waterside free-cooling.¹

This contract demonstrates that LG's cooling solutions meet AIR's stringent technical and reliability requirements for its hyperscale data center projects. Moving beyond single-project bids, the agreement establishes LG as a core infrastructure partner supporting the growth of AI data centers in North America.

For AIR, the partnership reinforces its position as one of North America's fastest-growing AI data center infrastructure platforms. As data center customers race to bring new capacity online, AIR is scaling the operational depth and supplier relationships needed to deliver mission-critical cooling infrastructure on schedule and at the standard the industry now requires.

Targeting Rapid Growth in the Global AIDC Market
The expansion of LG's AI data center cooling business draws on six decades of HVAC engineering experience in high-reliability environments such as nuclear power plants and large hospitals. Building on recent successes in supplying cooling solutions to hyperscale AI data centers in North America, LG is also expanding its global footprint with key data center projects in the Middle East and Indonesia. By leveraging the integrated capabilities of the broader LG Group to offer comprehensive cooling solutions, the company aims to drive mid- to long-term revenue growth.

The global AI data center market presents significant growth opportunities. According to Fortune Business Insights, the market is expected to grow by approximately 26 percent annually, reaching $133.5 billion by 2034. In its second-quarter 2026 earnings report, LG highlighted that first-half orders for data center cooling solutions exceeded $428 million, and the company expects orders to reach several billion dollars by year-end. The company expects to achieve its 2027 chiller business revenue target of approximately $680 million (1 trillion Korean won) ahead of schedule.²

Leveraging Complementary Capabilities to Address Exploding Demand
"This agreement reflects the confidence data center customers place in AIR to deliver mission-critical infrastructure at a scale and pace the industry has never seen before," said Brad Hobbs, Chief Executive Officer of AIR Control Concepts. "LG's high-efficiency chiller technology gives us a proven platform we can deploy with confidence across our AI data center portfolio, and this agreement positions AIR to support our customers' growth for years to come."

"As heat management in AI data centers emerges as a major global priority, LG aims to be a major player in the global AIDC cooling market," said James Lee, president of the LG Electronics ES Company. "We will achieve this through our differentiated technology, including our high-efficiency chillers, and our rapidly expanding experience in supplying leading big tech companies."

"We're excited to deepen our partnership with LG at exactly the moment our industry needs it most," said Hayden Bland, President of AIR Control Concepts. "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. For data center customers planning their next generation of infrastructure, now is the time to engage with us."

"Data center cooling represents a key pillar of LG's global growth strategy, and this major supply agreement with AIR marks an inflection point for LG's North American chiller business," said Don Kwack, CEO, LG Electronics North America. "This alliance leverages LG's proven cooling innovations and AIR's strong position with U.S. data center developers at a critical time for reliable AI infrastructure expansion."

¹ Based on LG's internal simulation of a single 1,750 kW unit operating at 100 percent cooling capacity under climate conditions in the Seoul metropolitan area. Annual energy consumption was calculated at 1,479,655 kWh for hydronic free-cooling and 1,044,824 kWh for refrigerant free-cooling. Actual energy consumption may vary depending on installation and operating conditions.

² This press release contains forward-looking statements regarding future revenue targets, which are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially. LG undertakes no obligation to update these statements.

About AIR Control Concepts
Headquartered in Norfolk, Virginia, AIR Control Concepts is a global platform operating across more than 50 operating companies and 3,500+ associates worldwide. AIR supports leading OEM partners and the customers they serve by combining deep local market expertise with the scale, resources, and connectivity of a global organization. Each operating company retains its culture, customer relationships, and regional expertise while gaining access to enterprise collaboration, shared services, and strategic investment. For more information, including partnership opportunities, visit aircontrolconcepts.com.

About the LG Electronics Eco Solution Company
The LG Eco Solution (ES) Company offers advanced air conditioning solutions, including chillers, for diverse sectors and climates. Committed to exceptional HVAC performance, the ES Company aims to enhance indoor comfort and well-being with innovative air care products. Leveraging deep industry expertise, it offers digitalized HVAC solutions designed for better life. As a trusted partner, the company integrates cutting-edge technology into daily operations while offering ongoing support. For more information, please visit www.LG.com/global/business/hvac.

About LG Air Conditioning Technologies USA
LG Electronics USA's Air Conditioning Technologies business is based in Alpharetta, Ga. From consumer and individual units to industrial and specialized air conditioning products and equipment, LG provides a wide range of products for heating, ventilating, air conditioning, water heating, and building controls in the United States. Eleven-time ENERGY STAR^® Partner of the Year, LG Electronics USA (headquartered in Englewood Cliffs, N.J.), is the North American subsidiary of LG Electronics Inc., a smart life solutions company with annual revenues of over $60 billion. Learn more at lghvac.com.

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