Kevin O’Leary Says Golf Courses Use More Water Than Data Centers So ‘Why Aren’t We Shutting All the Golf Courses Down?’

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Data centers have become an easy target in the fight over water, power and the rapid expansion of artificial intelligence. "Shark Tank" investor Kevin O'Leary thinks critics may want to take a closer look at another familiar fixture that drinks plenty of water: the golf course.

O'Leary made the comparison during an interview with the "Money Rehab" podcast in July, arguing that modern data centers don't use water the way older facilities did and that some of the loudest criticism misses how the technology has changed.

Host Nicole Lapin opened the discussion by making clear that she supports building more data centers in the U.S.

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O'Leary then zeroed in on what he sees as a bigger problem — claims about how much water data centers consume.

"So, where did this claim come from that data centers use up so much water that it's like the entire water table of a state is going to go down 10 feet? All these ridiculous claims," O'Leary said.

Then he brought golf courses into the conversation.

"Do you know what uses more water than many data centers? A golf course. Why aren't we shutting all the golf courses down?" O'Leary said.

The point, he argued, isn't that water use shouldn't be scrutinized. It's that data centers shouldn't automatically be treated as uniquely wasteful without considering the technology being used.

"If you really are worried about water in any state, look at how much water a golf course uses," O'Leary said.

O'Leary argued that comparisons with data centers built decades ago don't accurately reflect how many modern facilities operate.

"The modern-day data center today does not use water like the ones from 20 years ago," he said.

Older facilities often relied more heavily on evaporative cooling, while newer systems can use closed-loop technology.

"Now we have a closed loop — like your car radiator. You use the same water to cool the chips. So you're not using more water than that," O'Leary said.

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He also pointed to changes in power-generation technology, noting that turbines that once relied heavily on water can now be air-cooled or use a combination of air and water. Batteries, solar and wind can also be part of the power mix.

O'Leary said that makes some of the broader warnings about new data centers worth questioning.

"The idea that it's going to create mass amounts of heat, massive amounts of light, massive amounts of noise, huge drain on water — where did all that come from?" O'Leary said.

O'Leary's argument moved beyond water and into the business behind the facilities themselves.

"Data center development is actually real estate. That's what it is," O'Leary said.

That distinction matters. Data centers aren't simply giant warehouses filled with computers. Developers need land, power, cooling systems, fiber connections and permits, then lease the specialized facilities to companies that need computing capacity.

O'Leary compared the business with climate-controlled storage facilities once built for pharmaceutical companies.

"We'd build these buildings and we'd have to lease them," O'Leary said.

The comparison helps explain why the data center boom is also becoming a real estate story. Demand for computing capacity is pushing companies to secure specialized properties, while developers and real estate owners look for ways to profit from that demand.

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For everyday investors, owning an entire data center isn't exactly an easy weekend project. But fractional real estate investing offers a much lower-cost way to get exposure to property.

Arrived⁠ allows investors to buy fractional shares of rental properties with a minimum investment of $100. The platform handles the property operations, while investors can participate in potential rental income and appreciation.

That doesn't mean Arrived offers direct ownership of data centers. Its focus is residential real estate and related offerings. But the basic idea is similar: Real estate doesn't have to mean buying an entire property outright.

For O'Leary, the bigger argument is that the U.S. needs more infrastructure to support the technology economy.

"Look, we need more power. Period. The end. We need it from the land, from the sea, from space. We need it everywhere," O'Leary said.

The water debate isn't going away, particularly in communities where new facilities could put pressure on local resources. But O'Leary's argument is that the conversation should account for modern cooling technology and the actual water demands of individual projects — rather than treating every data center like the facilities of 20 years ago.

And if water use is going to be the measuring stick, O'Leary has already picked his next target — golf courses.

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This article Kevin O'Leary Says Golf Courses Use More Water Than Data Centers So 'Why Aren't We Shutting All the Golf Courses Down?' originally appeared on Benzinga.com

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