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AI Data Centers Trade Water for Persistent Chemicals

By Tech Desk · 2026-09-20 · 1 min read
A large industrial cooling tower with steam rising from its top
Illustration: Tradingbird

As artificial intelligence drives massive growth in data center infrastructure, operators are increasingly abandoning water for cooling fluids. This shift relies heavily on PFAS, a class of chemicals known for durability that now threatens to create new environmental liabilities.

The rapid expansion of AI infrastructure is accelerating the use of per- and polyfluoroalkyl substances, commonly known as forever chemicals. A recent report from the independent non-profit ChemSec highlights that this trend is driven by the demand for waterless cooling solutions. While these systems address concerns over water scarcity, they introduce significant environmental and health hazards into a critical sector of the global economy.

The PFAS market is valued at an estimated 25 to 30 billion dollars, with most producers expanding their capacity to meet rising demand. Sectors such as semiconductor manufacturing and lithium-ion battery production also contribute to this growth, benefiting from the heat resistance and durability of these compounds. However, the specific pressure from AI data centers is transforming cooling practices at an unprecedented scale.

Water scarcity drives cooling shift

A 2025 report by techUK noted that over half of data centers in England already utilize waterless cooling systems. This transition is partly a response to public and regulatory concerns about water consumption, as a medium-sized facility can use up to 110 million gallons annually. This volume is equivalent to the usage of approximately 1,000 households, making the search for alternatives a strategic priority for operators.

Persistent chemicals pose health risks

Replacing water with fluorinated gases creates a new set of problems. These chemicals are known to persist in soil, food, and drinking water, leading to long-term accumulation in ecosystems. The European Commission has linked exposure to these substances to serious health risks, including cancer. Critics argue that this approach swaps one environmental issue for another without solving the underlying sustainability challenge.

Regulators urge rapid phaseout

Anne-Sofie Bäckar, executive director of ChemSec, warned that without government intervention, the industry faces a tidal wave of forever chemicals. While some regions are already regulating specific compounds, the long-term impact on AI infrastructure remains uncertain. Operators must now evaluate their current systems for PFAS content, monitor regulatory changes, and invest in safer alternatives to avoid future liabilities.

Based on reporting by ET Datacenters, compiled by the Tradingbird desk.

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