Data Centers Swap Water for PFAS to Cool AI Servers
Data centers are increasingly using PFAS, or “forever chemicals,” to cool AI equipment instead of water. Major chemical producers are expanding production to meet demand from semiconductor and data‑center industries, sparking legal and environmental backlash.
By Felo News Desk · Published
In the race to power artificial‑intelligence workloads, data‑center operators are turning to fluorinated chemicals—most notably per‑ and polyfluoroalkyl substances (PFAS)—to keep servers cool. The shift from water‑based cooling to PFAS‑based systems has prompted scrutiny from environmental groups, regulators, and even lawmakers, as the chemicals’ persistence in the environment and potential health risks become clearer.
Why PFAS Are Becoming the Cooling Choice
PFAS are prized for their heat‑resistance and chemical stability. These properties make them ideal for the high‑temperature, high‑pressure environments inside hyperscale data centers. Unlike water, PFAS do not evaporate or corrode the metal components that house server racks. The result is a closed‑loop system that can operate at higher temperatures while reducing the need for frequent maintenance.
Three main drivers are pushing demand for PFAS: the rapid expansion of AI‑driven data centers, the semiconductor manufacturing sector, and the production of lithium‑ion batteries. Together, these industries require cooling solutions that can handle massive heat loads without compromising reliability.
Major Chemical Producers Expand Capacity
A recent ChemSec report highlighted that global PFAS producers—such as Japan’s Daikin, France’s Arkema, and the U.S. company Chemours—are increasing output to meet the growing demand. Daikin plans to triple its PFAS capacity, while Arkema is expanding production in North America and Asia. Chemours, which generates the largest share of PFAS on ChemSec’s list, is developing new refrigerants specifically for data‑center cooling.
These expansions come at a time when data‑center construction is booming. According to a 2026 BOMA study, data‑center facilities accounted for nearly 46% of private construction in 2023, a dramatic rise from less than 5% a decade earlier. Statista reports that construction spending on data centers surged from $1.8 billion in 2014 to $41.1 billion last year.
Environmental and Health Concerns Rise
PFAS are dubbed “forever chemicals” because their strong carbon‑fluorine bonds resist breakdown. This durability means they can accumulate in water, soil, and living organisms. The National Health and Nutrition Examination Survey found PFAS in the blood of 97% of Americans. ChemSec estimates that PFAS production generated $4 billion in profit in 2022, while the societal costs—including healthcare, cleanup, and contaminated water—reach an estimated $17.5 trillion annually.
Environmental groups have taken legal action against companies producing PFAS for data‑center cooling. In July, 17 organizations sent a letter to the EPA rejecting Chemours’ request to fast‑track a new PFAS compound, Opteon 2P50, citing insufficient toxicological data and potential climate risks. The letter warned that even a small leak from a large data center could release significant amounts of PFAS gases into the atmosphere.
Corporate Responses and Legal Battles
Chemours maintains that its cooling systems operate as a closed loop, with minimal gas escape. The company has also launched new refrigerants in August, emphasizing the need for solutions that match the demands of AI workloads without compromising efficiency or regulatory compliance. However, the firm has faced lawsuits, including a January case filed by 192 French citizens and four environmental groups accusing Arkema and Daikin of PFAS pollution.
Both Arkema and Daikin have publicly committed to defending themselves in court and accelerating investments to better control PFAS emissions. Meanwhile, Chemours has continued to expand its production, arguing that its products are essential for the next generation of data‑center cooling.
What Happens Next?
The debate over PFAS in data‑center cooling is far from settled. Regulators are evaluating the environmental impact of large‑scale PFAS use, while environmental groups push for stricter controls or a shift back to water‑based systems. Companies are balancing the need for reliable cooling with the growing pressure to reduce chemical footprints. The outcome will shape not only the future of AI infrastructure but also the broader environmental legacy of the technology sector.
Key facts
- PFAS are replacing water in data‑center cooling due to heat‑resistance.
- Major producers like Daikin, Arkema, and Chemours are expanding PFAS output.
- PFAS pose long‑term environmental and health risks, with 97% of Americans showing exposure.
- Environmental groups have challenged the use of new PFAS compounds in cooling systems.
- Companies face lawsuits and regulatory scrutiny over PFAS emissions.
- Data‑center construction and cooling demand are growing rapidly, driving PFAS use.
Why it matters
The adoption of PFAS in data‑center cooling raises serious environmental and public‑health concerns, highlighting the tension between technological advancement and sustainable practices.
Frequently asked questions
What are PFAS and why are they used in data centers?
PFAS are per‑ and polyfluoroalkyl substances that resist heat and corrosion, making them ideal for high‑temperature cooling loops in data centers.
Are PFAS safe for humans and the environment?
PFAS are persistent chemicals that can accumulate in water, soil, and living organisms, raising concerns about long‑term health and environmental impacts.
What legal actions have been taken against PFAS producers?
Environmental groups have sued companies like Chemours, Arkema, and Daikin for PFAS pollution and challenged the fast‑tracking of new PFAS compounds.
Sources
- [1] fortune.com — originally reported as “Data centers are swapping water for forever chemicals to keep AI cool”



