Does the processor in the machine support Logical Partitioning? Yes.
Is it the same as on POWER7 and earlier and the POWER8 systems that run AIX/IBMi/Linux? No.
It's to do with the firmware stack that's being run. The -L and -LC boxes run a firmware stack called OPAL, the OpenPower Abstraction Layer, where Linux runs in Hypervisor mode and you can use KVM to create virtual machines (using the LPAR functionality of the chip). Paul Mackerras gave a great talk at linux.conf.au 2015 on KVM on POWER that's up on youtube here: https://www.youtube.com/watch?v=GJWe8dUADXg
For non-L non-LC machines, they run PowerVM, the IBM proprietary hypervisor. This enables those machines to run AIX, IBMi and Linux (either one whole machine partition or combinations thereof). In this setup, Linux runs as a guest of the PowerVM hypervisor. PowerVM and Linux on bare metal (running KVM or not) serve different markets.
Now... can you run a guest on the S822L for HPC? Sure, all the bits are there. However, there are limitations (e.g. GPU passthrough) on that and it's not the target market for *this* machine. This machine is designed for HPC workloads that use a lot of GPU.
Hope this helps,
OPAL Architect, IBM
(Usual disclaimer: I don't speak for IBM)