Data Center Construction Boom Drives Demand for Three Types of Chemicals

From the user's perspective, generative AI models appear no different from traditional software in their interface, but behind the scenes, they rely on massive data center infrastructure. The computing power demands of artificial intelligence and its associated advanced chips are driving a boom in data center construction, triggering surging demand for specialty chemicals in three key areas: water treatment, cooling systems, and construction engineering.

The high-intensity computing in data centers generates enormous heat, spurring innovation in liquid cooling technologies. Traditional cloud computing data centers mostly use air cooling, but AI has completely changed this landscape. Kelly Morgan, Research Director at S&P Market Intelligence, noted: "AI chips need to perform more computations within the same space, significantly increasing energy consumption, which means chip-level liquid cooling solutions must be adopted."

Currently, two main solutions dominate: one immerses server components in liquid chemical coolants for efficient heat dissipation, though operators often hesitate to handle immersed equipment; the other delivers liquid directly to the chip surface via micro-scale cooling circuits, using evaporation to remove heat. Morgan added that data centers also require secondary systems such as cooling towers to discharge residual heat.

Brendy Lange, President of Dow’s Performance Materials & Coatings business, said: "Direct chip cooling is currently the mainstream solution, while immersion cooling is considered next-generation technology."

Ecolab, a global leader in water treatment, views data centers as a strategic growth area. Josh Magnusson, Executive Vice President of Global Water Solutions, revealed that in August, Ecolab acquired Ovivo’s electronics business based in Montreal for $1.8 billion to strengthen its capabilities in ultrapure water treatment for semiconductors. The company expects related annual revenues to reach $800 million, with double-digit growth projected.

On energy efficiency, Magnusson emphasized: "Customers want energy used for computing, not cooling, but as system complexity increases, cooling energy consumption continues to rise. We help customers increase the proportion of energy dedicated to computing by improving heat exchange efficiency." Ecolab is also applying its thermal management expertise from petrochemical plants to data centers, developing new additives to enhance coolant thermal performance.

Many data centers are located in arid regions, making water management a critical industry focus. In places like Arizona, U.S., data center development has sparked controversy over water usage. Magnusson stated: "Through intelligent water and coolant management, both energy consumption and environmental footprint can be reduced. Major operators are now prioritizing water conservation as a key metric."

Dow’s Lange pointed out: "As environmental pressures on land and water resources grow, customers are increasingly prioritizing sustainability when selecting data center materials." Driven by opportunities linked to AI growth, Dow’s thermal management materials business is experiencing double-digit growth, and the company is developing new thermal materials to improve system efficiency and reliability.

DuPont’s electronics unit Qnity has launched leading solutions for thermal and power management, including gap fillers, thermal interface materials, and heat sinks—essential for maintaining device reliability and performance. Max Horsley, Qnity’s Strategic Lead, said data centers represent one of Qnity’s fastest-growing end markets, alongside AI and high-performance computing.

The data center construction boom is also creating new opportunities for construction chemicals. Matt Schlarb, Vice President of Investor Relations at RPM International, noted: "The trend toward locating hyperscale facilities in remote areas, combined with massive power and water requirements, is making data center construction standards increasingly complex." The company provides fireproofing materials, polymer flooring, and other specialty construction materials for data centers. Scott Copeland, RPM’s Vice President of Commercial Operations, stressed the importance of construction speed: "Compared to the value of internal equipment, the cost of the building envelope is negligible. Modular construction and product warranties have become key solutions." He forecasts double-digit growth in data center construction over the next five years, far outpacing other construction sectors, with significant potential in the future maintenance market.