New Chemicals for Data Centers: Potential Impacts of the Trump Administration's Policy

The Trump administration has embraced deregulation to spur growth in areas like coal mining and now turns its focus to chemical regulations. Experts worry that this shift could ease the development and approval of new 'forever chemicals'—chemicals that persist in the environment—in the U.S. with minimal oversight.

Fast-Track Approval Process

In a September announcement, the EPA indicated it would expedite reviews of chemicals intended for use in data centers. This move comes under a broader initiative following executive orders on artificial intelligence and a subsequent AI Action Plan. The plan, developed after receiving input from over 10,000 public comments, aims to usher in a new era of American technological leadership.

According to Greg Schweer, who led the EPA's new chemicals branch until 2020, previous administrations steered clear of political interference in science-based chemical evaluations. However, industry interests now find a sympathetic ear.

Clearing the Backlog: An Administrative Priority

Trump's EPA looks to resolve a longstanding issue—a backlog of chemical reviews—by prioritizing case processing efficiency. The administration cites inherited delays as obstacles to advancing data center and AI projects, emphasizing their urgency.

A new criterion allows companies to seek quicker assessments if they can prove their chemicals are essential for specific projects such as expanding energy grids or enhancing national security.

Criticism of Oversight Loopholes

Critics highlight potential loopholes in the expedited process. They argue that political connections could enable some chemicals to slip through without rigorous examination.

Concerns are also raised about manufacturers possibly leveraging the policy to sidestep comprehensive scientific investigations. Quick approvals might lead reviewers to overlook detailed data.

Chemical Use in Data Centers

Although physical data centers may not introduce a large number of chemicals, advancements in cooling techniques point to a growing use of potentially harmful chemicals. Immersion cooling, which involves using specialized fluids to keep equipment cold, is especially notable.

Such cooling fluids often contain substances that may contribute to the formation of PFAS, or 'forever chemicals,' which have faced tighter regulations in recent years due to their environmental persistence and health risks.

Corporate Awareness and Regulatory Impact

Awareness is growing about the implications of using PFAS in cooling systems, particularly after legal actions against major producers. Microsoft, for instance, has been transparent in its caution and has held off using immersion cooling commercially.

Meanwhile, some companies such as Chemours are developing new two-phase cooling products while emphasizing energy efficiency gains. However, any commercial uses are contingent on regulatory approval.

The Semiconductor Industry's High Stakes

The push for domestic semiconductor production ties into the policy changes, as these manufacturers heavily depend on complex chemical processes often involving PFAS.

Internal documents reveal lobbying efforts to adjust EPA regulations to better support the semiconductor sector, underscoring the industry's interest in more lenient chemical controls.

A Broader Industry Impact

The new EPA policy potentially benefits a range of industries beyond data centers by linking their chemical processes to data center development. This broad applicability could ease the path to approval for many chemicals not directly related to data centers.

There’s caution among experts who argue for balancing regulatory efficiency with thorough scientific analysis, advising that while speeding up approvals can drive growth, it may also introduce long-term risks.