LG wins $720M AI data center cooling contract in Indonesia

LG Electronics has secured a major contract to provide advanced cooling systems for a large-scale AI data center under construction in Jakarta, Indonesia. The project positions LG to significantly expand its business-to-business cooling solutions footprint across Asia, with ambitious targets to reach $720 million in annual chiller sales and triple data center cooling orders within two years.

What you should know: LG will supply a comprehensive suite of thermal management technologies for the Jakarta facility, expected to be among Indonesia’s largest data centers.
• The cooling package includes chillers, computer room air handlers (CRAH), air handling units (AHU), computer room air conditioners (CRAC), and fan wall units (FWU).
• A custom-designed building management system (BMS) will provide centralized control and seamless integration of all cooling components.
• The facility is being developed by LG Sinarmas Technology Solutions, a joint venture between LG CNS and Indonesia’s Sinar Mas Group, with operations expected to begin in the second half of 2026.

The big picture: This contract represents LG’s strategic push into the rapidly growing AI infrastructure market, leveraging advanced cooling technologies to meet the intense thermal demands of next-generation data centers.
• LG has set ambitious targets to boost annual sales from its chiller business to $720 million and more than triple orders for data center cooling solutions over the next two years.
• The project brings together capabilities from multiple LG affiliates, demonstrating the company’s integrated approach to large-scale infrastructure projects.

Key technology: LG’s oil-free centrifugal chiller featuring LeviTech technology serves as the core cooling solution, designed specifically for energy efficiency and sustainability.
• The system uses low-GWP (Global Warming Potential) refrigerant to minimize environmental impact while maintaining optimal performance for mission-critical operations.
• The technology ensures both efficiency and stability for high-density AI server environments that generate substantial heat loads.

In plain English: Think of AI data centers as massive warehouses packed with thousands of powerful computers running 24/7. These computers generate enormous amounts of heat—like having hundreds of space heaters running constantly in a confined space. LG’s cooling system works like a sophisticated air conditioning network that not only keeps these computers from overheating but does so efficiently to save energy and reduce environmental impact.

What they’re saying: “This project in Jakarta demonstrates LG’s capability to deliver essential infrastructure for AI data centers,” said James Lee, president of LG’s ES Company.
• “By leveraging our advanced technologies and collaborating closely with LG CNS and LG Energy Solution, we plan to expand our global footprint in the HVAC business.”

Broader industry context: LG’s expansion comes as Korean companies increasingly invest in advanced cooling solutions for AI infrastructure.
• In June, LG Uplus, a Korean telecommunications carrier, launched a liquid cooling demonstration room at its Pyeongchon 2 data center, showcasing technologies like direct-to-chip cooling and immersion cooling for high-heat AI server environments.
• The carrier is collaborating with global cooling companies including Vertiv and CoolIT Systems, as well as Korean firms like Global Standard Technology (GST), to develop next-generation thermal management solutions.