Data Centers Swap Water for Forever Chemicals to Cool AI

Data centers forever chemicals are officially the next front in the AI infrastructure fight. A new report from chemical watchdog ChemSec has found that most of the world’s biggest PFAS producers are expanding their capacity thanks to AI infrastructure, as cooling systems inside data centers increasingly swap water for fluorinated compounds.

The finding lands with uncomfortable timing. The midterms are six weeks away, and Republicans are already walking a fine line between meeting constituents who oppose data center growth and agreeing with a president who keeps advocating for it. Now there is another wrinkle: the release of “forever chemicals” into the air.

PFAS Makers Bet Big on AI Demand

PFAS handle the heat. That's the short name for per- and polyfluoroalkyl substances, and they're being used to manage the enormous amounts of heat generated by data center equipment. Major chemical producers are ramping up. Japanese conglomerate Daikin, French materials manufacturer Arkema and American chemical company Chemours are all increasing PFAS production to meet growing demand from the semiconductor and data center industries, and they don't show any sign of slowing down.

Three demand sources drive this surge. Data center cooling. Semiconductor manufacturing. Lithium-ion battery materials. Chemours produces or uses more PFAS substances than any other company on ChemSec's list, according to the SIN Producers database, and that's a fact worth sitting with. ChemSec estimates that between half and two-thirds of Chemours' $5.8 billion revenue comes from PFAS production, and the company is developing products intended specifically for data center cooling as it expands its refrigerant output.

Daikin plans to triple its PFAS capacity in response to semiconductor demand. Arkema is expanding production in North America and in Asia.

The Water Catch-22

Here is the trap. Data centers have long faced criticism over their water usage, which is why newer cooling systems in these facilities are turning to fluorinated chemicals that include PFAS instead of water. The trade is not a clean one.

They're called "forever chemicals." They resist heat well. That makes these chemical-bonded substances particularly useful in food packaging, stain-resistant sprays and firefighting foam, since the same property that keeps them stable under high temperatures is what manufacturers have long wanted for products that face tough conditions. But that same strong chemical bond is exactly why PFAS does not degrade easily. So when exposure occurs, it's dangerous for humans and nature. We can't break that bond easily.

That durability makes PFAS desirable. They're in semiconductor manufacturing, industrial equipment and cooling systems. And that same staying power, the very quality that makes them so useful in all those applications, is what makes their environmental and health footprint hard to cover. We can't get around it.

97% of Americans Carry PFAS in Their Blood

That chemical durability is already showing up. It's in our lives. Data from the National Health and Nutrition Examination Survey, which tested people across the country, found PFAS in the blood of 97% of Americans, and that's a number we can't ignore.

The economics are just as stark. The world’s biggest makers of “forever chemicals” pulled in roughly $4 billion in profit in 2022, against an estimated $17.5 trillion a year in societal costs covering healthcare, cleanup and contaminated water, per an earlier 2023 analysis by ChemSec.

Data Center Construction Is Exploding

Data center development keeps growing regardless. A 2026 study from the commercial real estate trade association BOMA found data center facilities accounted for nearly 46% of private construction last year, compared to less than 5% a decade ago. The dollar value of data construction spending exploded too, from $1.8 billion in 2014 to $41.1 billion last year, per Statista.

That scale is what turns a chemical supply question into a public health question. A hyperscale data center can contain hundreds of tanks, totaling tens of thousands of liters of dielectric fluid, according to a July letter from 17 environmental organizations to the EPA.

A small leak happens. Even a small fraction of the Opteon 2P50 used in a large data center can leak, and when that happens it would release a large amount of PFAS gases into the air. And when cooling tanks need to be replaced, large amounts of Opteon 2P50 will be disposed or released. That increases the risk. It's a risk to the public and the environment, and we've got no way to pretend otherwise.

Those groups asked the EPA to reject Chemours’ application. They want a new PFAS chemical, Opteon 2P50, fast-tracked for data center cooling, and they're saying no. They argued Chemours had underestimated the compound's potential health and climate risks, and that the available toxicological evidence was insufficient. It's not enough. And they don't buy the company's safety case, because the toxicological evidence they've seen so far can't support the kind of quick approval Chemours is after.

Chemours Pushes Back

Chemours has denied those concerns. The company said the system operates as a “closed loop” and that the amount of gas escaping during operation is low. It has also continued moving forward in its data center cooling process, launching new refrigerants in August.

AI is reshaping the demands placed on cooling infrastructure, and customers need solutions that can keep pace without compromising efficiency, reliability, or long-term regulatory readiness, Joseph Martinko, President of Thermal & Specialized Solutions at Chemours, said in prepared remarks. They need choices. Chemours is expanding the choices available to chiller OEMs and operators as they build and maintain the critical systems powering data centers, commercial buildings, and other mission critical environments, while further strengthening our position in attractive, high-growth cooling applications. And it's not compromising efficiency.

The regulatory readiness Chemours cites is precisely what the EPA letter, the French lawsuit and the growing stack of contamination claims are testing.

Legal Pressure Builds Abroad

French citizens filed a lawsuit against Arkema and Daikin in January over PFAS pollution allegations, citing concerns about a “chemical valley.” The suit included 192 citizens and four environmental organizations.

Arkema says it will defend itself. That's the company's line. It stated it "will defend itself before the court against the allegations contained in the summons," and it's separately pushed back on related contamination claims, which means it isn't staying quiet on either front. Daikin, meanwhile, said it has "accelerated its investments" since 2022 to better control its PFAS emissions. So they're both talking. But the court will decide.

For operators and the communities hosting them, the cooling decision now carries a longer tail than the water bill ever did. Swapping one environmental liability for another may solve the immediate heat problem. It does not solve the chemistry.

• The scale: Data centers made up nearly 46% of private construction last year, up from under 5% a decade ago.
• The money: Data construction spending rose from $1.8 billion in 2014 to $41.1 billion last year.
• The exposure: PFAS has been detected in the blood of 97% of Americans.
• The mismatch: Roughly $4 billion in industry profit against an estimated $17.5 trillion a year in societal costs.

The midterm pressure only sharpens the politics. Candidates who want to oppose data center growth now have a second argument to make, and it does not require them to explain water tables or tax abatements. Data centers forever chemicals is a phrase that fits on a yard sign.