EPA Sued Over Fast-Track Approval of Toxic 'Data Center Chemicals'

The Environmental Protection Agency (EPA) faces a lawsuit from the nonprofit Earthjustice over its approval of two photoacid generators — chemicals critical to semiconductor manufacturing. According to the complaint, the EPA authorized the import and use of these substances with minimal restrictions, despite evidence they pose an 'unreasonable risk' to workers and the public.

Earthjustice attorney Jonathan Kalmuss-Katz, who is leading the case, stated that the EPA 'does not know the level at which the chemicals are acutely lethal or cause other serious health damage.' The lawsuit argues that under the Toxic Substances Control Act (TSCA), if a chemical may present an unreasonable risk, the EPA must prohibit or limit its use — not grant approval with weak safeguards.

The approvals come amid a broader push by the Trump administration to bolster U.S. semiconductor manufacturing. In 2025, President Trump issued an executive order to fast-track chemicals needed for data centers and chip fabrication. It is unclear whether these two photoacid generators were subject to that order, but the lawsuit contends the EPA's actions fit 'a broader pattern around data centers' to expedite approvals regardless of health risks.

Photoacid generators are used in photolithography, a process that patterns circuits onto silicon wafers. As demand for AI and data center infrastructure surges, so does demand for the chemicals that enable chip production. However, Earthjustice alleges the EPA did not conduct adequate testing and that exposure to the chemicals could lead to 'sudden death,' along with cancer, eye corrosion, and reproductive harm. The chemicals also appear to be PFAS, a class of compounds known for their persistence in the environment and links to health problems.

The EPA has not publicly responded to the specific allegations. Supporters of the administration's approach argue that reducing reliance on foreign chip supply — particularly from Taiwan and China — is a national security priority and that overly burdensome regulation could stifle domestic manufacturing. Industry groups have noted that semiconductor supply chains depend on specialized chemicals, and delays in approval could hamper production goals.

Despite these arguments, critics warn that fast-tracking toxic substances without proper safety data puts factory workers and nearby communities at risk. 'This is turning the new chemical review process on its head,' Kalmuss-Katz said. 'The EPA has failed at its most fundamental obligation: to protect the public from unreasonable risk.' The outcome of the lawsuit could set a precedent for how the agency balances economic competitiveness with environmental and occupational safety.

Why This Matters

Health and safety risk: Factory workers and communities near semiconductor fabs may be exposed to chemicals linked to sudden death, cancer, and neurological damage without full understanding of safe exposure levels.
Environmental persistence: The chemicals appear to be PFAS, meaning they could contaminate water and soil for decades, compounding existing concerns about 'forever chemicals.'
Policy precedent: The case tests whether the EPA can legally bypass its toxicity-review obligations under TSCA to fast-track substances deemed critical for national competitiveness.

Background

The Toxic Substances Control Act (TSCA) requires the EPA to review new chemicals before they enter commerce and to take action if they pose an unreasonable risk. In recent years, the EPA has faced criticism from both industry (for being too slow) and environmental groups (for being too lenient). In 2025, President Trump issued an executive order directing agencies to expedite approvals of chemicals and materials needed for data center construction and semiconductor manufacturing, part of a broader push to onshore chip production after the CHIPS Act. The two photoacid generators at issue were approved under this accelerated process, according to Earthjustice. Photoacid generators are essential for photolithography, the process that etches microscopic circuits onto silicon wafers. Their approval is seen as a way to prevent supply chain bottlenecks as hyperscalers like Microsoft and Amazon build massive data center campuses.

Key Perspectives

Earthjustice and public health advocates: The EPA violated TSCA by approving chemicals without determining safe exposure levels. Workers and the public deserve protection from documented acute and chronic health risks. The agency must halt use until proper risk assessments are completed. EPA and the Trump administration: The fast-track approvals are necessary to maintain U.S. leadership in semiconductor manufacturing and reduce dependency on foreign supply chains. The agency may argue it imposed sufficient restrictions and that the chemicals are vital for national security and economic growth. Semiconductor industry and data center operators: They need a reliable, timely supply of specialty chemicals to meet explosive demand for AI chips and data center hardware. Delays in chemical approvals could stall fab construction and exacerbate global chip shortages.

What to Watch

Court ruling: The lawsuit will test whether the EPA's accelerated approval process violates TSCA. A court order blocking use of the chemicals could disrupt semiconductor supply chains.
EPA response: The agency may issue a revised risk assessment or impose additional restrictions. Watch for any new testing requirements or public comment periods.
Congressional action: Lawmakers may introduce legislation to clarify the EPA's authority to fast-track chemicals in the name of national security, potentially codifying the executive order.
Scientific studies: Independent researchers may release their own toxicity data on photoacid generators, influencing public opinion and regulatory decisions.

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