Most major PFAS manufacturers plan to expand their capacities. Demand is increasing from data centers, semiconductor manufacturers, and lithium-ion battery material producers, according to a report by ChemSec.
PFAS, or per- and polyfluoroalkyl substances, are often referred to as ‘forever chemicals.’ Many of these substances degrade very slowly in the environment, and some can accumulate in the body.
They are resistant to heat, making them useful in cooling systems, chip production, and lithium-ion battery materials.
ChemSec researchers examined the ten largest producers of these substances. There is no data on global production volumes; the organization compiled the list based on the amount of PFAS companies produce or import into the EU and the US, as well as information from public sources.
The majority of firms on the list are already expanding chemical production in Europe, Asia, and North America.
BASF and Archroma have chosen a different path. BASF plans to phase out chemical products containing PFAS by 2028, except for certain active ingredients for agriculture. Archroma is reducing the number of PFAS it uses and developing alternatives without them.
Where ‘Forever Chemicals’ Are Needed
One cooling option for data centers is a two-phase immersion system. Servers are submerged in a dielectric fluid with a low boiling point. When heated, it turns into vapor, then condenses and returns to the system.
Fluorinated liquids can be used for such installations. They help reduce water and electricity consumption compared to some traditional systems.
However, the technology remains niche. According to ChemSec, most data centers do not use PFAS for cooling. Air systems and single-phase liquid cooling without such substances are much more common.
Manufacturers link new investments to demand from digital infrastructure and the semiconductor industry.
Daikin is building a new plant in Japan to produce perfluoroelastomer FFKM for chip manufacturing equipment. Deliveries are expected to start in 2027. According to ChemSec, the company plans to more than triple its production capacity for this material.
In 2025, Arkema launched production of HFO 1233zd in Kentucky with a capacity of 15,000 tons per year. The project involved an investment of about $60 million. One of the products is intended for heat dissipation in high-temperature heat pumps and data centers.
Chemours is developing the Opteon 2P50 fluid for two-phase immersion cooling. According to the company, it can reduce cooling energy costs by up to 90% and overall data center energy consumption by up to 40%. The product is currently undergoing regulatory approval.
ChemSec classifies Opteon 2P50 as PFAS. Chemours disagrees, stating that due to its chemical properties and decomposition nature, it does not consider the substance part of this class. There is no unified international definition of PFAS.
According to ChemSec, PFAS production accounts for half to two-thirds of Chemours’ revenue, totaling $5.8 billion.
Industry Concerns
In July, 17 environmental organizations appealed to the US Environmental Protection Agency (EPA) to reject Chemours’ application for Opteon 2P50 and not to fast-track its approval.
The organizations warned that large data centers might require tens of thousands of liters of such fluid. They believe that even small leaks, if the technology becomes widespread, could pose an environmental contamination risk.
Chemours countered that the two-phase system operates in a closed loop and the substance should not be released into the environment under normal operation.
On January 29, 192 residents of France and four environmental organizations filed a lawsuit against Arkema and Daikin over alleged PFAS contamination in the Lyon area. The plaintiffs are seeking over €36 million in compensation.
Arkema stated it would defend its position in court. Daikin reported measures to reduce emissions and investments in environmental control.
“The expansion plans of these companies show that if governments and regulators do not demand a rapid phase-out, we will face a new wave of forever chemicals,” said ChemSec Executive Director Anne-Sofie Beckman.
ChemSec is a non-profit organization advocating for the restriction and replacement of hazardous chemicals. Along with the publication of the study, it sent blood test kits for PFAS to the heads of European manufacturers on the list and suggested they publicly disclose the results.
In July, Water UK warned that the UK would not have enough water for planned data centers.
Previously, the governor of New York imposed a moratorium on the construction of large data centers until a law is passed.
