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TheCorporateCounsel

TheCorporateCounsel.net

A basis for research and practical guidance focusing on federal securities laws, compliance & corporate governance.

DealLawyers

DealLawyers.com

An educational service that provides practical guidance on legal issues involving public and private mergers & acquisitions, joint ventures, private equity – and much more.

CompensationStandards

CompensationStandards.com

The “one stop” resource for information about responsible executive compensation practices & disclosure.

Section16.net

Section16.net

Widely recognized as the premier online research platform providing practical guidance on issues involving Section 16 of the Securities Exchange Act of 1934 and all of its related rules.

PracticalESG

PracticalESG.com

Keeping you in-the-know on environmental, social and governance developments

Data centers have become a flashpoint in the ongoing debate about the role of generative AI in society. We’ve covered the impacts of data centers on corporate emissions and heat islands. Now a recent report from ChemSec raises a new environmental concern: PFAS. As it turns out, PFAS is a key component in electronics used in manufacturing servers and GPUs. The proliferation of data centers is now driving increased PFAS production by increasing the demand for the hazardous “forever chemicals.” The report states:

“ChemSec’s research reveals that the majority of producers are expanding their PFAS capacity. The expansion is driven by three main sources of demand — AI and data-centre infrastructure, semiconductor manufacturing, and lithium-ion battery materials.

PFAS manufacturers all over the world are explicitly framing their investments around ‘the AI revolution’ and microchip fabrication. Battery-grade fluoropolymers are a parallel growth area, in which Arkema and Syensqo are expanding their existing production and building new manufacturing facilities.”

At this point, data centers are battling a negative public image as communities worry about the public nuisance posed by the resource-intensive AI infrastructure. Data centers can harm air quality when powered by natural gas turbines, create constant noise pollution in the form of low hums, and warm surrounding areas through the heat that dissipates from cooling computing hardware. These environmental impacts are continually eroding AI companies’ social license to operate. Driving increased PFAS production marks another harm the industry must combat if it wants to continue expansion. Some states have already paused data center development. Localities proposing new data centers regularly face pushback from their constituents. Right now, the AI industry needs to take sustainability seriously. Their long-term growth depends on it.

Our members can learn more about AI in ESG here.

If you’re not already a member, sign up now and take advantage of our no-risk “100-Day Promise” – during the first 100 days as an activated member, you may cancel for any reason and receive a full refund. But it will probably pay for itself before then. Members also save hours of research and reading time each week by using our filtered and curated library of ESG/sustainability resources covering over 100 sustainability subject areas – updated daily with practical and credible information.

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The Editor

Zachary Barlow is a licensed attorney. He earned his JD from the University of Mississippi and has a bachelor’s in Public Policy Leadership. He practiced law at a mid-size firm and handled a wide variety of cases. During this time he assisted in overseeing compliance of a public entity and litigated contract disputes, gaining experience both in and outside of the courtroom. Zachary currently assists the PracticalESG.com editorial team by providing research and creating content on a spectrum of ESG… View Profile