Many major PFAS producers are planning to increase their production capacities due to rising demand from data centers, semiconductor manufacturers, and lithium-ion battery materials, according to a report from ChemSec.

PFAS, or per- and polyfluoroalkyl substances, are often referred to as "forever chemicals" because of their slow degradation in the environment and potential accumulation in living organisms.

These substances are heat-resistant, making them suitable for cooling systems, chip manufacturing, and lithium-ion battery materials.

ChemSec's research focused on the ten largest producers of these substances. While global production volume data is lacking, the organization compiled its list based on the amount of PFAS produced or imported in the EU and the US, along with information from public sources.

The majority of companies on this list are already expanding their chemical production in Europe, Asia, and North America.

However, BASF and Archroma have chosen a different path. BASF plans to phase out PFAS-containing chemical products by 2028, with some exceptions for active agricultural substances. Archroma is reducing its use of PFAS and developing alternatives.

Where 'Forever Chemicals' Are Needed

One cooling method for data centers involves a two-phase immersion system, where servers are submerged in a dielectric fluid with a low boiling point. As the fluid heats up, it vaporizes, condenses, and returns to the system.

Fluorinated fluids can be used for these setups, which help reduce water and electricity consumption compared to some traditional systems.

However, this technology remains niche. According to ChemSec, most data centers do not use PFAS for cooling, with air systems and single-phase liquid cooling without these substances being more common.

Manufacturers link their new investments to the demand from digital infrastructure and the semiconductor sector.

Daikin is constructing a new plant in Japan to produce perfluoroelastomer FFKM for chip manufacturing equipment, with production expected to begin in 2027. ChemSec reports that the company aims to more than triple its output of this material.

In 2025, Arkema launched production of HFO 1233zd in Kentucky, with an annual capacity of 15,000 tons, investing approximately $60 million. One of the products is designed for heat transfer in high-temperature heat pumps and data centers.

Chemours is developing a fluid called Opteon 2P50 for two-phase immersion cooling, claiming it can reduce cooling energy costs by up to 90% and overall energy consumption in data centers by 40%. The product is currently undergoing regulatory approval.

ChemSec categorizes Opteon 2P50 as a PFAS, but Chemours disagrees, asserting that due to its chemical properties and degradation nature, it does not classify as such. There is no universal definition of PFAS.

ChemSec estimates that PFAS production accounts for half to two-thirds of Chemours' revenue, which totals $5.8 billion.

Industry Criticism

In July, 17 environmental organizations petitioned the US Environmental Protection Agency (EPA) to reject Chemours' application for Opteon 2P50 and not expedite its review.

The groups warned that large data centers could require tens of thousands of liters of this fluid, arguing that even minor leaks could pose environmental contamination risks if the technology becomes widespread.

Chemours countered that the two-phase system operates in a closed loop, and the substance should not be released into the environment under normal operating conditions.

On January 29, 192 residents of France and four environmental organizations filed a lawsuit against Arkema and Daikin for alleged PFAS contamination in the Lyon area, seeking over €36 million in damages.

Arkema stated it would defend its position in court, while Daikin reported on measures to reduce emissions and investments in environmental oversight.

"The expansion plans of these companies indicate that if governments and regulators do not demand a swift phase-out, we will face a new wave of forever chemicals," stated ChemSec Executive Director Anne-Sophie Beckar.

ChemSec is a non-profit organization advocating for the restriction and replacement of hazardous chemicals. Alongside the report's release, it provided blood testing kits for PFAS to European manufacturers on the list and urged them to publicly disclose results.

Notably, in July, Water UK warned that the UK would face water shortages for planned data centers.

Previously, the Governor of New York imposed a moratorium on the construction of large data centers until legislation is approved.