AI Boom Driving Increase in PFAS Production, Watchdog Warns

The Swedish environmental organization ChemSec has warned that the expansion of artificial intelligence is triggering a tidal wave of per- and polyfluorinated alkyl substances, commonly known as PFAS or forever chemicals. A survey of the ten largest PFAS manufacturers revealed that a majority plan to increase production to meet the demands of the AI industry. These chemicals are essential for semiconductor manufacturing and next generation cooling systems for data centers. For example, Arkema is building a new production facility in Kentucky, while Daikin and Chemours have also announced plans to grow in this market segment.

PFAS are used in data centers for two phase immersion cooling, where servers are submerged in fluid that boils to draw away heat. In semiconductor production, these chemicals are integrated into as many as 1,000 distinct steps. Beyond AI, producers cited growth in coatings for lithium ion batteries used in electric vehicles and phones. While most large manufacturers are expanding, BASF and 3M have announced plans to exit PFAS production, and Archroma is switching to PFAS free alternatives.

Critics and environmentalists warn that these substances do not degrade in nature and can accumulate in soil, water, and humans. Some PFAS have been linked to cancer and other health risks. While some companies argue that their liquid cooling solutions reduce energy and water costs, analysts warn that the chemicals represent a hidden risk for the AI boom due to potential multibillion euro litigation and remediation liabilities.