TLDR

• LG is investing $63.9 million to build a 352,000-square-foot chiller assembly plant in Virginia, creating 164 jobs by early 2027.
• The facility will produce large air-cooled chillers, helping meet growing cooling needs for AI data centers and other commercial buildings.
• This domestic manufacturing boost can shorten equipment lead times and support contractors, property managers, and HVAC businesses with better local supply and service.

LG is investing $63.9 million to build a 352,000-square-foot facility in Isle of Wight County, Virginia. The new plant will assemble large air-cooled chillers, machines that cool buildings by circulating chilled water using fans and compressors. Production is set to start in the first half of 2027, creating 164 jobs in assembly, testing, and logistics. This move supports growing demand for commercial cooling, especially from expanding AI data centers, signaling a boost in U.S. manufacturing and job opportunities in HVAC.

Incentives, permits, and workforce pipeline

State and local approvals will play a big role in the 2026–2027 ramp-up of LG’s Virginia chiller plant. Keep an eye on bid portals for early construction packages as site work gets underway. Virginia also offers workforce programs that fund training and apprenticeships. Expect hiring waves as the plant nears commissioning. Commissioning is the process of testing a system to make sure it works as designed. These chillers are commercial products, so residential SEER2 efficiency rules don’t apply. Instead, they must meet commercial building codes and come with detailed commissioning documents. These rules ensure the chillers operate safely and efficiently when installed. Overall, regulatory steps and workforce preparation will be key to a smooth launch and long-term success.

Impact on availability, jobs, and project timing

Contractors can expect shorter lead times thanks to domestic production. This means equipment arrives faster, and they can take on more work like installation, controls integration, and service. Controls integration means connecting the chiller to a building automation system for smarter operation. Property managers face tighter cooling capacity as data centers grow. Starting design and ordering earlier helps lock in schedules and avoid delays. For HVAC businesses and homeowners, having a regional plant improves access to parts and technical support. Even though the chillers are commercial, better local supply chains can mean faster repairs and upgrades. Overall, the new Virginia facility helps ease equipment bottlenecks, supports job growth in assembly and service, and encourages planning ahead for smoother project timing.

What LG will build: large air-cooled chillers

LG’s new Virginia facility will assemble large air-cooled chillers. These are big machines that cool water using fans and compressors. The chilled water then helps cool the air inside buildings. You’ll commonly find these systems in offices, schools, hospitals, and data centers that use chilled-water cooling. Expect the chillers to feature modern controls that simplify operation and remote monitoring for easy system checks. They’ll also use refrigerants with lower global warming potential (GWP), which means they have less impact on the environment. This aligns with industry trends toward smarter, greener cooling solutions.

Timeline and how to prepare

Construction of the LG chiller assembly plant will begin in 2026, with the first units expected to roll out in the first half of 2027. Early planning should include arranging cranes for lifting heavy equipment, rigging for safe handling, and electrical tie-ins to power the facility. Contractors can use the Contractor Portal for quick, two-click ordering and real-time tracking of parts and materials. Property managers overseeing multiple sites should schedule a Strategy Call to coordinate orders and delivery schedules smoothly. If you're unsure about the right system for your needs, HVAC365 offers instant sizing tools to help you find the perfect match. For chilled-water system parts and controls, our Commercial HVAC Parts shop provides reliable options to support your projects efficiently.

Key Takeaways

• LG is investing over $63.9 million to build a 352,000-square-foot facility in Virginia that will assemble large air-cooled chillers starting in the first half of 2027. These chillers are key for cooling big buildings like offices, hospitals, and data centers by producing chilled water using fans and compressors.
• The new plant will create 164 jobs in assembly, testing, and logistics, supporting the local workforce and training programs. This addresses the skilled labor demand in HVAC, especially for commercial cooling systems.
• Domestic production of chillers can reduce lead times and improve equipment availability. Contractors will find new opportunities in installation, controls integration, and service, while property managers should plan projects earlier due to growing data-center cooling needs.
• LG’s Virginia facility is linked to a major AI data-center cooling contract exceeding 5 gigawatts. This shows a broader commercial trend toward high-capacity, specialized cooling driven by AI infrastructure expansion.

Frequently Asked Questions

What is LG building in Isle of Wight County, Virginia?

LG is opening a large assembly facility covering 352,000 square feet. It will produce big air-cooled chillers, which are machines that cool buildings by making chilled water using fans and compressors.

When will the Virginia chiller plant start production and how many jobs will it create?

The plant is expected to begin producing chillers in the first half of 2027. It will create 164 new jobs in areas like assembly, testing, and logistics.

How will this new LG facility impact contractors and property managers?

Contractors may see shorter lead times and more work opportunities installing and servicing chillers. Property managers should plan projects earlier because data-center growth increases demand for large cooling systems.

Why does this plant matter beyond local job creation?

The facility supports a long-term deal to supply chillers for North American AI data centers, which need high-capacity cooling. It also helps reduce reliance on overseas manufacturing, improving regional supply chains.

Related Topics: LG chiller plant, Virginia HVAC jobs, air-cooled chillers, AI data center cooling, HVAC manufacturing, HVAC jobs 2027, HVAC supply chain, energy-efficient chillers, HVAC industry investment, commercial HVAC equipment, HVAC workforce development