ChemSec Warns AI Demand Drives PFAS Production Surge

The Swedish chemicals watchdog ChemSec warns that the world's largest manufacturers of per- and polyfluoroalkyl substances (PFAS) are significantly increasing production to meet demand from the artificial intelligence industry. These forever chemicals are essential for semiconductor fabrication and next-generation two-phase immersion cooling systems used in data centers.

Several major companies are expanding their facilities to support AI hardware. Arkema is investing $60 million in a new production unit in Kentucky for data center cooling, while Daikin is launching a datacentre hub to increase fluorine product sales. The Chemours Company is expanding its liquid cooling solutions, and Gujarat Fluorochemicals has identified data centers and electric vehicle batteries as sunrise sectors for growth.

ChemSec executive director Anne-Sofie Bäckar warns that this expansion creates a tidal wave of chemicals that could undermine regulatory efforts in the United States, the United Kingdom, and Europe. While most top manufacturers are growing, BASF plans to exit PFAS production by 2028 and Archroma is transitioning to PFAS-free alternatives. Critics warn that the persistence of these chemicals poses severe health risks, including cancer, and creates multibillion-euro litigation liabilities for the industry.