Producers of PFAS (per- and polyfluoroalkyl substances) are ramping up their manufacturing efforts in response to heightened demand from the artificial intelligence sector, raising alarms among environmental activists. Despite significant concerns surrounding these "forever chemicals," which have been associated with serious health risks including cancer, a survey of the top ten manufacturers reveals that nearly all are planning to boost production.
Many companies justify their expansions by highlighting the role of PFAS in semiconductor production and advanced cooling systems for data centers, which are essential for powering AI technologies. However, critics warn that this surge in production threatens to counteract initial regulatory efforts to limit PFAS usage across Europe, the UK, and various areas of the US.
Anne-Sofie Bäckar, executive director of ChemSec, a Swedish NGO focused on chemical safety, emphasized the urgency of the situation, stating that increased production could lead to a widespread proliferation of these harmful substances unless governments impose stringent regulations.
The ChemSec survey indicates that most of the key PFAS manufacturers, including major firms in Europe, Asia, and North America, are planning to expand their production capabilities. The rapid growth of AI technologies is a significant driver of this demand, particularly for cooling systems that are marketed as environmentally friendly and for various phases of semiconductor manufacturing processes.
Japanese company Daikin is poised to establish a new "data center hub" to cater to this demand, committing to enhance its market share through both existing fluorine products and new innovations. Meanwhile, France’s Arkema is investing in a $60 million production unit in Kentucky to support the expanding cooling requirements of data centers. U.S.-based Chemours is also scaling up operations to address the needs of advanced data centers and AI hardware, promoting its liquid cooling solutions as energy-efficient options that reduce overall operational costs.
Despite Chemours’ expansion plans, critics argue that the company has downplayed the environmental and health risks associated with PFAS, especially following a hefty $450 million settlement over contaminations.
Other producers increasing their output include Japan's AGC, China's Dongyue, India's Gujarat Fluorochemicals, Russia’s HaloPolymer, Mexico's Orbia Fluor & Energy Materials, U.S. firm Solstice, and Belgium's Syensqo. Gujarat Fluorochemicals' CEO highlighted the significant growth potential in sectors including lithium-ion batteries, used in electric vehicles, laptops, and smartphones, alongside a booming demand for data centers and semiconductors.
Notably, the Swiss company Archroma plans to transition towards offering PFAS-free alternatives. Similarly, the German giant BASF has announced its intention to phase out PFAS production by 2028.
PFAS are increasingly utilized in innovative cooling systems for data centers, promised to be both water- and energy-efficient. In a two-phase immersion cooling setup, servers are submerged in a low-boiling PFAS fluid, which captures heat as it vaporizes and then condenses back into liquid form, ensuring continuous cooling.
The significance of PFAS in semiconductor fabrication is underscored by a recent note from Danske Bank, stating these substances are critical to many stages of chip production. However, analysts caution that the rising dependence on PFAS presents "hidden risks" associated with potential high costs for cleanup and litigation.
The robust carbon-fluorine bonds found in PFAS render them resistant to breakdown, making them valuable for various industrial applications, yet they are virtually indestructible in natural environments. Consequently, they persist in ecosystems and can accumulate in air, water, and soil, leading to toxic levels in the food chain.
Though PFAS have only been around for a relatively short time, their environmental accumulation has already surpassed safe limits, with scientists indicating that traces of these chemicals may be present in the blood of nearly every person alive today. Research suggests links to a range of health issues, including cancer and kidney disease.
In a bid to raise awareness, ChemSec has sent blood-testing kits to CEOs of the leading European PFAS manufacturers, encouraging them to test for and disclose PFAS levels in their own blood. Bäckar remarked that those in leadership must recognize that they too are susceptible to the toxins they produce, as studies have found PFAS in the blood of over 99% of the global population.
