Data Centers Trade Water Usage for Forever Chemicals to Cool AI Infrastructure

Forever Chemicals Replace Water in Data Center Cooling

AI infrastructure expansion is driving unprecedented demand for PFAS-based refrigerants as data centers seek alternative cooling solutions to address water usage concerns. A ChemSec report reveals that major forever chemicals producers are significantly expanding production capacity, with the AI boom creating a controversial trade-off between two environmental challenges1

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Data center cooling systems are increasingly adopting fluorinated chemicals containing PFAS instead of traditional water-based methods. The world's largest PFAS manufacturers generated roughly $4 billion in profit in 2022, while societal costs—including healthcare, cleanup and contaminated water—reached an estimated $17.5 trillion annually according to ChemSec's 2023 analysis1

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. This stark disparity highlights the long-term environmental and health risks of PFAS versus short-term industry gains.

AI Data Centers Drive Explosive Growth in Construction

The data center construction boom reflects the scale of AI infrastructure investment. A 2026 BOMA study found data center facilities accounted for nearly 46% of private construction last year, compared to less than 5% a decade ago. Construction spending exploded from $1.8 billion in 2014 to $41.1 billion last year, per Statista1

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. This rapid expansion intensifies demand for effective cooling technologies as AI workloads generate enormous heat from servers and semiconductors2

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Chemours produces or uses more PFAS substances than any other company on ChemSec's SIN Producers database. The chemical corporation is developing products specifically for data center cooling while expanding PFAS-based refrigerants production. ChemSec estimates between half and two-thirds of Chemours' $5.8 billion revenue comes from PFAS production1

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. Daikin plans to triple its PFAS capacity responding to semiconductor manufacturing demand, while Arkema expands production in North America and Asia1

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Environmental and Health Risks of PFAS Intensify Regulatory Scrutiny

Forever chemicals earn their nickname from extraordinarily strong carbon-fluorine bonds that resist degradation for hundreds or thousands of years. This durability makes PFAS valuable in semiconductor manufacturing, industrial equipment and closed-loop cooling systems, but creates severe environmental concerns. National Health and Nutrition Examination Survey data found PFAS in the blood of 97% of Americans1

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. Exposure to certain PFAS has been linked to cancer, fertility issues, kidney and liver problems, and immune system complications2

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In July, 17 environmental organizations submitted a letter to the EPA rejecting Chemours' application to fast-track Opteon 2P50, a new PFAS chemical for data center cooling. The groups argued Chemours underestimated the compound's health and climate risks, noting insufficient toxicological evidence. "A hyperscale data center can contain hundreds of tanks, totaling tens of thousands of liters of dielectric fluid," the letter stated. "If even a small fraction of the Opteon 2P50 used in a large data center leaks, it would result in a significant release of PFAS gases"1

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Industry Response and Alternative Cooling Solutions

Chemours denied these environmental concerns, stating the system operates as a "closed loop" with low gas escape during operation. The company launched new refrigerants in August despite ongoing criticism. "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," said Joseph Martinko, President of Thermal & Specialized Solutions at Chemours1

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The American Chemistry Council stated that "as AI workloads increase the heat generated by servers and semiconductors, some data centers are exploring liquid-based cooling systems" including those using PFAS. "These technologies can help improve cooling efficiency and, in some cases, significantly reduce water usage in data centers associated with traditional cooling approaches," the trade group noted2

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However, Kyle Doudrick, an environmental engineering professor at the University of Notre Dame, expressed skepticism about closed-loop systems: "The worry is that no closed system is perfect and that these chemicals leak out over time, which is probably true... nothing is 100 percent sealed"2

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. Lenny Siegel, executive director of the Center for Public Environmental Oversight, questioned long-term disposal: "'Closed loop' is a great concept, but it doesn't deal with leaks or long-term disposal of the chemicals"2

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Tech Giants Navigate PFAS Controversy

Major technology companies provided varying responses regarding PFAS use. Google and Apple stated they do not use PFAS in data center cooling systems. Amazon said it doesn't currently use liquid immersion cooling, the main technology driving PFAS concerns, though didn't clarify other cooling technologies. Oracle, Meta and Microsoft did not respond to inquiries2

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Kate Manz, assistant professor of environmental health science at the University of Michigan, raised concerns about chemical transformation: "There's a lot of concern about what happens to the chemicals being used during the cooling process in the data centers, because they can potentially transform into a short-chain chemical called trifluoroacetic acid." The European Food Safety Authority has expressed concerns about this chemical's thyroid impacts2

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The Trump administration's supportive stance toward AI and data centers includes efforts to cut regulatory barriers, with the EPA fast-tracking approval processes for data center chemicals2

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. This regulatory approach may accelerate PFAS adoption despite mounting sustainability concerns. French citizens filed a lawsuit against Arkema and Daikin on PFAS pollution allegations in January1

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, signaling growing international pushback against forever chemicals expansion driven by the AI boom.