LG Electronics breaks ground on Qingdao plant expansion to capture global AI cooling demand

LG Electronics has begun expanding its plant in Qingdao, China, to respond to surging global demand for artificial intelligence (AI) data center cooling. With large orders continuing from North America and other overseas markets, the company aims to boost production capacity at a key base and seize leadership in the cooling solutions market.

According to China's Fenghuangwang on Nov. 5, LG Electronics recently broke ground on a project to add a new production line and a smart test center at its cooling equipment plant in Qingdao. The plan centers on building a state-of-the-art modernized production line and fully upgrading eco-friendly painting processes on existing lines.

The expansion is scheduled for completion by the end of 2026 and will begin full operation in 2027. The expanded Qingdao plant will serve as a forward base to handle rapidly growing orders from overseas data center customers and supply customized high-end cooling products.

As AI semiconductors become more powerful, data center heat output is rising, and LG Electronics' cooling equipment orders are climbing sharply. In September 2026, the company was officially registered as a power and cooling partner in the Nvidia Partner Network (NPN), gaining recognition for its technology in the global market.

In October, LG Electronics reportedly signed power and cooling partner contracts of more than 5 gigawatts (GW) in North America. Along with the Qingdao plant expansion, the company will build a new production plant in Virginia, United States, in 2027. Through these moves, it plans to expand cooling equipment production capacity by about tenfold next year compared with this year.

Ryu Jae-cheol, CEO of LG Electronics, recently visited Qingdao and met with Qingdao Mayor Ren Gang to discuss expansion of existing businesses and increased investment. During the meeting, Ryu said, "LG Electronics' remarkable development in Qingdao is thanks to the city's excellent infrastructure," adding, "The two sides have already become partners sharing mutual benefits."

Earlier, on Oct. 19, Ryu presented an AI data center cooling strategy in a contribution to the Forbes Technology Council. He explained that cooling technology saves energy and allows it to be redirected to AI computing, bringing meaningful change to industrial development.

Qingdao has designated artificial intelligence and integrated circuits as key leading industries and is fostering them. As the city actively promotes power grid efficiency and eco-friendly data centers across its infrastructure, cooperation between the two sides is expanding into smart city construction overall.

※ This article is an AI translation of the Korean original published by Korea Credit News; it was checked by automated quality guards and published by the English edition desk.