The AI industry is creating fresh demand for Pfas chemicals, and manufacturers are preparing to produce more of them. Most of the 10 biggest Pfas companies have plans to expand production, linking their investments to semiconductor manufacturing, datacentres and new cooling systems.
The expansion covers sites in Europe, Asia and North America, based on a survey by ChemSec, the Swedish chemicals watchdog. Nearly all of the 10 biggest manufacturers identified plans to increase production, while companies describe the AI revolution as a major reason for investing in new capacity and products.
Why AI needs Pfas chemicals
Pfas play a crucial role in the fabrication process for semiconductors, the components at the heart of AI hardware. Producers also point to coatings and binders for lithium-ion batteries as a growth area, adding another market tied to the wider technology and energy industries.
The chemicals are also used in a new form of datacentre cooling called two-phase immersion cooling. In this system, servers sit inside Pfas with a low boiling point. As the hardware heats up, the liquid boils and pulls heat away as vapor; the vapor then cools back into liquid and re-enters the cycle.
That process gives Pfas a direct role in managing the heat produced by computer systems. As companies build infrastructure for AI hardware, semiconductor production and datacentres, chemical manufacturers are presenting cooling products as part of that expansion.
Japan-headquartered Daikin is launching a “datacentre hub” to meet demand. The company plans to expand sales of its existing fluorine products and introduce new products for the market.
Manufacturers line up new capacity
French multinational Arkema is expanding its refrigerant offering with a new $60m (£44m) production unit in Kentucky. US Pfas producer Chemours is also expanding to meet demand from “advanced datacenters and AI hardware” and offers “innovative liquid cooling solutions”.
Chemours’ expansion comes after the company was ordered to pay $450m to settle a lawsuit over Pfas discharges. That legal case sits alongside the environmental and health concerns raised by the planned increase in production.
Other companies increasing production include Japanese multinational AGC, Chinese conglomerate Dongyue, India-based Gujarat Fluorochemicals, Russian Pfas producer HaloPolymer, Mexico’s Orbia Fluor & Energy Materials, US-based Solstice and Belgian multinational Syensqo.
Gujarat Fluorochemicals chief executive Bir Kapoor identified batteries as a “sunrise sector” alongside datacentres, semiconductors and green hydrogen. His description shows how Pfas manufacturers are connecting the chemicals to several fast-growing industries, not just AI computing.
The planned increases do not represent the same path for every chemical company. BASF, the German company, has said it will exit Pfas production by 2028, even as other manufacturers plan to expand their output and develop new products.
The environmental question around AI infrastructure
Pfas are known as forever chemicals because they persist, which makes any increase in production a concern beyond the factories that make them. Their use in semiconductor fabrication, battery materials and cooling systems means they can enter several parts of the technology supply chain.
Anne-Sofie Bäckar of ChemSec said: “These companies’ expansion plans show that unless governments and regulators insist on a rapid phaseout, we will face a new tidal wave of forever chemicals.”
The tension is clear: AI systems need semiconductors and datacentres, while some of the companies building that infrastructure are turning to Pfas for manufacturing and heat control. The industry is presenting new production as a response to rising demand, but the same plans are bringing renewed attention to the chemicals’ environmental and health risks.
For now, the biggest Pfas manufacturers are moving in different directions. BASF plans to leave the market by 2028, while Daikin, Arkema, Chemours and several other producers are expanding products or facilities tied to AI hardware, datacentre cooling, batteries and semiconductor production.
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