As artificial intelligence reshapes global industry, PFAS manufacturers are racing to expand output — and regulators may not be ready to stop them.
In a factory outside Osaka, engineers at Daikin are preparing what the company calls a "datacentre hub" — a dedicated production line for the fluorinated chemicals that keep AI servers cool and semiconductor wafers clean. Daikin is not alone. A survey by ChemSec, the Swedish chemicals watchdog, found that nearly all of the ten largest PFAS manufacturers worldwide had active plans to increase output, with sites expanding across Europe, Asia and North America. The demand driver, cited repeatedly in corporate filings and press releases, is the same: the AI revolution.
PFAS — per- and polyfluoroalkyl substances — are used at multiple stages of semiconductor manufacturing and are central to the liquid cooling systems that next-generation datacentres rely on to manage heat. Because they do not break down in soil, water or the human body, they have been linked to cancers, immune disruption and reproductive harm. Chemours, a US-based producer recently ordered to pay $450 million to settle a lawsuit over PFAS discharges into waterways, is nonetheless expanding its "innovative liquid cooling solutions" range to serve what it describes as advanced datacentre and AI hardware markets. France's Arkema has opened a $60 million production unit in Kentucky for refrigerants aimed squarely at the same sector.
The expansion is alarming to health advocates precisely because Europe, the United Kingdom and parts of the United States have only recently begun drafting restrictions on the chemicals. Anne-Sofie Bäckar, executive director of ChemSec, argues that corporate growth plans are moving faster than regulatory ones.