Data water vs golf courses: the comparison that's not so simple

What happened?

Kevin O'Leary, the investor known for his role on Shark Tank and promoter of the Stratos data center megaproject in Utah, told Business Insider that AI data centers consume much less water than U.S. golf courses. The claim, reported by The Next Web, aims to defend the water viability of his 40,000-acre (about 16,187 hectares) project in Millard County, which has sparked protests from local communities and environmental activists, and even an executive order from Governor Spencer Cox to review water use. O'Leary, who has invested $1 billion in the project, argues that the comparison shows concern over water consumption is disproportionate.

Is the comparison correct?

According to the Golf Course Superintendents Association of America (GCSAA), U.S. golf courses use approximately 2.08 million acre-feet of water per year (about 2.57 billion cubic meters). In contrast, data centers consume around 1.7 million acre-feet annually, according to industry estimates compiled by the U.S. Department of Energy. In aggregate numbers, O'Leary is right: data centers use less water than golf courses. However, the comparison is misleading for several key reasons:

• Type of water: Most golf courses irrigate with treated wastewater or recycled water. According to the GCSAA, approximately 50% of water used on golf courses comes from recycled or non-potable sources. In contrast, data centers typically use potable water for their evaporative cooling systems, competing directly with human and municipal consumption. This is critical in water-stressed regions.
• Location: The impact of water consumption depends on the region. A data center in a water-stressed area like Utah, which faces a two-decade drought and the shrinking of the Great Salt Lake, has very different consequences than a golf course in a rainy area like the Northeast. Utah has already seen the Great Salt Lake drop to historic lows, exposing toxic lakebeds that generate harmful dust.
• Trend: Data center water consumption is growing rapidly due to the rise of generative AI. A 2024 report from the International Energy Agency (IEA) estimates that data center water consumption could double by 2026, reaching 4.2 million acre-feet, surpassing golf courses. In contrast, golf course consumption is stable or declining due to improvements in irrigation efficiency.

Why is it important?

The debate is not just technical but political and economic. O'Leary's Stratos project has been criticized by local communities and environmental activists who fear it will worsen water scarcity in a region already affected by the Salt Lake drought. The comparison with golf courses aims to minimize these concerns, but experts say a more nuanced analysis is needed. A GCSAA spokesperson stated: “The comparison is technically correct today, but it doesn't capture the complexity of the issue. Recycled water for golf courses is not the same as potable water for data centers.” Moreover, the Utah region already faces water conflicts among agriculture, urban development, and environmental conservation. Governor Cox issued an executive order in 2024 requiring water impact studies for data center projects over 100 acres, reflecting growing regulatory concern.

Consequences for the sector

This debate could accelerate the adoption of more efficient cooling technologies, such as direct liquid cooling (DLC) or the use of gray and recycled water. Companies like Google and Microsoft have already committed to replenishing more water than they consume by 2030. Google, for example, reported in 2023 that it replenished 120% of the water it consumed in its data centers, mainly through aquifer recharge projects. Microsoft, meanwhile, is investing in cooling technologies that eliminate water use entirely, such as immersion in dielectric fluid. Additionally, the controversy could influence local regulations on the siting of new data centers. In Virginia, the world's largest data center market, moratoriums on new projects are being considered due to water and energy concerns. In Utah, the Stratos project could set a precedent for how the water impact of these megaprojects is assessed.

What should readers know?

• O'Leary's comparison is correct in raw numbers but omits crucial differences in water type and local impact. While golf courses use recycled water, data centers consume potable water, and their exponential growth could reverse the comparison within a few years.
• Data center water consumption is a growing problem, especially with the demand for generative AI. A query to ChatGPT consumes between 10 and 50 times more water than a traditional Google search, according to a study by the University of California, Riverside.
• The solution is not to demonize data centers but to promote technologies that reduce their reliance on potable water, such as liquid cooling and alternative water sources. Investors and regulators should demand transparency in water consumption reporting and encourage siting data centers in water-abundant regions or cold climates. The debate also opens the door to rethinking water use in other sectors, such as agriculture, which consumes 80% of water in the western U.S. but often faces less scrutiny.