Shares of LG Electronics surged 9.3% to KRW 81,900 on October 7, 2026, after the company's U.S. unit disclosed a landmark long-term deal to supply cooling equipment for more than 5 gigawatts of AI data-center capacity in North America. The contract, with infrastructure platform AIR Control Concepts, thrusts a company best known for TVs and refrigerators squarely into the AI supply chain — and forces investors to decide whether that pivot deserves a fundamentally higher price.

  • The Deal Is Worth Several Billion Dollars — And Could Grow. An LG spokesperson said the contract was worth "several trillion won, or several billion dollars," though exact terms were not disclosed. Applying industry benchmarks to the 5 GW covered, analysts estimate the chiller supply opportunity alone at up to KRW 2.5 trillion (~$1.8 billion). Critically, LG and AIR are discussing expanding the contract to include liquid-cooling units that regulate coolant flow to servers — and if those are added, the actual scale could exceed current estimates.

  • A Backlog Building Fast Enough to Move the Needle. LG's AI data-center cooling orders topped KRW 600 billion (~$446 million) in the first half of 2026, and Meritz Securities expects the company to secure an order backlog of roughly KRW 3 trillion by year-end, which "should rapidly translate into visible results."

LG also expects to reach its KRW 1 trillion chiller-sales target ahead of the original end-of-2027 schedule. For a conglomerate with quarterly revenue around KRW 24 trillion, a trillion-won cooling business alone won't transform earnings overnight — but it redefines the growth story.

  • Analysts Are Piling On With Higher Targets. Meritz Securities raised its target from KRW 220,000 to KRW 250,000, while Shinhan Investment hiked its target 61% to KRW 290,000, and Daishin lifted to KRW 270,000. The thesis is consistent: as cooling and robotics gains become measurable in revenue, the stock deserves a higher price relative to its earnings — a so-called valuation upgrade.

  • The Competitive Window May Not Stay Open Long. LG has obtained certifications for liquid-cooling units up to 2.5 MW and is pursuing 4-MW certification, which major competitors have not yet secured — a lead that could drive further orders if maintained.

The global data-center cooling market is projected at $24.2 billion in 2026, growing at a 12.3% CAGR through 2035. LG is chasing a fast-expanding pie, but incumbents and new entrants will follow. The durability of this contract — multi-year, preferred-supplier status — matters more than any single quarter.