The report comes from independent non-profit ChemSec and assesses the output of the world’s major PFAS producers – a large group of synthetic substances known as “forever chemicals” due to their durability. ChemSec estimates that the PFAS market is worth between US$25 – 30 billion, and its report shows that most producers are expanding their PFAS capacity. This increase is powered by the growth of several sectors: AI and data centre infrastructure, semiconductor manufacturing, and lithium-ion battery materials.
PFAS are resistant to heat and don’t degrade quickly or easily, and thus are highly beneficial for these sectors. The sectors support a myriad of rapidly developing industries. The demand for them, and PFAS, is expanding.
As AI advancements increase and data centre development grows alongside it, the need for cooling follows. Producing PFAS can meet this demand more effectively, while water is a finite resource. Newly installed cooling systems rely on fluorinated gases including PFAS, rather than water.
A 2025 techUK report, previously covered by Capacity, found that 51% of England’s data centres used waterless cooling systems and only 4% reported using over 100,000m³ of water per year. Closed-loop air cooling is often a driver behind these, alongside direct-to-chip liquid cooling. Public concerns for water scarcity are a driving force behind both the rise of PFAS and pushback against data centre development.
Research from climate non-profit Environmental and Energy Study Institute (EESI) showed that a medium-sized data centre can consume up to approximately 110 million gallons of water per year for cooling. This is equivalent to the annual water usage of around 1,000 households. In response to these concerns, some technology companies have worked to reduce their water usage to meet sustainability standards.
For those developing new data centres, or who are installing new cooling systems, PFAS-powered systems can prevent the constraints of using water. Taking caution While utilising PFAS to avoid the contentious water issue seems to be a good fix, it might instead be a good jumping-off point for more environmentally friendly solutions. What makes the chemicals so robust also makes them hazardous to humans and the environment.
This means that, for the time being, developers may be swapping one issue for another. ChemSec’s report highlights concern around the environmental impact of scaling up PFAS production. The chemicals have been found to pollute the environment when used in industrial activities, as they can leak into soil, food, and drinking water.
According to the European Commission, this can disrupt ecosystems, cause long-term accumulation in flora and fauna, and cause diseases such as cancer. Anne-Sofie Bäckar, executive director of ChemSec, commented on the PFAS boom: “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.” Some countries and regions, such as the EU, have called for businesses to invest in safer alternatives to PFAS, while regulating production of specific chemicals. This pressure has already prompted PFAS producers in industries such as textiles and coatings to switch to PFAS-free chemical alternatives; it remains to be seen how the same pressure might impact AI data centre infrastructure in the long-term.
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