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The “AI revolution” is driving a “tidal wave” of new PFAS production to meet the demands of rapid expansion of artificial intelligence (AI) and the data centers needed to power it, The Guardian reported.
Exploding demand for lithium-ion batteries is also driving up demand for the chemicals, according to a new report by chemical industry watchdog ChemSec.
Per- and polyfluoroalkyl substances (PFAS), also known as “forever chemicals” because they never degrade, have been linked to illnesses including cancer, thyroid disease and inflammatory bowel disease. They’ve also been linked to developmental issues in children.
In the last two years, new regulations have placed restrictions on some PFAS chemicals in drinking water and food packaging in the U.S. and Europe. And winning lawsuits have compelled some PFAS producers to pay hundreds of millions of dollars to settle health claims against DuPont and other companies.
Yet, ChemSec’s survey of the 10 largest PFAS manufacturers found that rather than being deterred by new regulations and the growing body of evidence of PFAS-related health problems, most producers are set to expand production in the coming years.
“PFAS manufacturers all over the world are explicitly framing their investments around ‘the AI revolution’ and microchip fabrication,” ChemSec reported.
PFAS are used at multiple points in the infrastructure underlying AI. They play a key role in semiconductor manufacturing, and they are a major component of cooling systems that remove the enormous amounts of heat generated by data centers.
That demand is fueling new investment in PFAS production even as governments struggle with widespread contamination from decades of previous use, and manufacturers face billions of dollars in liabilities.
ChemSec warns the increased demand driving production expansion signals that “the only effective method to end this toxic pollution crisis is to implement universal bans with strictly time-limited derogations to enable certain sectors to adjust.”
Producers ramp up despite health, environmental risks
ChemSec investigated the plans of 10 of the world’s leading PFAS producers and found that nearly all of them plan to ramp up production in the U.S., Europe and Asia to meet AI’s growing demand.
Computers and servers in data centers get hot. To cool them, sites typically use a compressor with gases that cool air or water — similar to a refrigerator, but on a much larger scale, according to the Sierra Club. Some of those gases contain PFAS.
Alternatively, computers are submerged in a chemical fluid, also containing PFAS, that absorbs the heat. In both cases, chemicals can leach into the earth or the air.
The AI boom is also driving a spike in the production of semiconductors, which process data at high speeds. Traditional computer chips are too slow to meet the needs of large language models, which require semiconductor chips that depend on PFAS for production.
Chemours, the U.S. chemical company spun off from DuPont in 2015, produces or uses more PFAS substances than any other company on ChemSec’s list, according to the report. ChemSec estimates that between half and two-thirds of the company’s revenue is tied to PFAS.
Chemours is developing a fluorinated fluid, Opteon 2P50, specifically to cool data center servers. The chemical is still awaiting federal approval, but Chemours says it will “revolutionize” data center cooling — dramatically reducing cooling system energy consumption by up to 90% and data center energy use by up to 40%.
In another example, Japanese manufacturer Daikin plans to more than triple its fluoropolymer production capacity by 2027, with semiconductor demand among the factors driving the expansion, according to ChemSec.
Electric vehicles and other battery-powered technology represent another source of demand. Fluoropolymers are used as binders and separator coatings in lithium-ion batteries.
Other companies planning to expand their PFAS production include Bayer, AGC, Arkema, Orbia Fluor & Energy Materials, Solstice, and 3M and Syensqo — which is currently building the largest battery-grade PVDF production facility in North America.
Only two companies on ChemSec’s list, BASF and Archroma, are cutting back on PFAS production.
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Big Chemical companies rack up Big Fines
The PFAS market is relatively small compared to other chemicals — it’s worth about $25-30 billion per year according to the report. Yet, the human and environmental health costs of the industry are estimated to be about 440 billion euros ($510 billion) in Europe alone by 2050.
According to Reuters, in 2017, DuPont and Chemours agreed to pay $670.7 million to settle about 3,550 personal-injury claims stemming from PFOA — perfluorooctanoic acid, a type of PFAS — contamination associated with DuPont’s Washington Works plant near Parkersburg, West Virginia. The companies denied wrongdoing as part of the settlement.
In a separate decision in June 2026, the Trump administration reached an agreement with Chemours over long-term illegal discharges of the forever chemicals into water in West Virginia, North Carolina and New Jersey. The penalties and relief costs are estimated at about $450 million.
In total, Chemours has paid out $2.4 billion in damages from PFAS violations in the U.S., according to the ChemSec report.
When drinking-water contamination treatment costs are included, the costs grow significantly. In 2024, a federal court approved a settlement under which 3M committed up to $10.3 billion in payments to public water systems that detected PFAS or may do so in the future.
For years, the U.S. Environmental Protection Agency (EPA) relied largely on voluntary industry programs, chemical reporting requirements and nonbinding drinking-water health advisories to address PFAS.
It wasn’t until April 2024 that the EPA established the country’s first legally enforceable national drinking-water limits for the chemicals, including maximum contaminant levels of 4 parts per trillion for PFOA and PFOS.
The regulatory landscape has since shifted. The Trump administration announced in 2025 that it would retain the PFOA and PFOS limits while reconsidering standards for several other PFAS, effectively initiating a rollback of the first-ever limits on PFAS in drinking water.
In 2026, EPA proposed extending the compliance timeline for PFOA and PFOS and rescinding drinking-water limits for other forever chemicals, including PFHxS, PFNA, GenX and other mixtures containing several PFAS.
Related articles in The Defender
- PFAS Is Everywhere, Even in Newborns — and It’s Leaving Fingerprints in Our Blood
- PFAS Pesticide Residue Found on 96% of ‘Dirty Dozen’ Fruits and Vegetables
- PFAS Chemicals May Weaken Kids’ Immune Systems
- PFAS ‘Forever Chemicals’ Linked to Cancer, Birth Defects — And They’re Everywhere
- PFAS Exposure Linked to 56% Percent Higher Risk of Thyroid Cancer
