Kevin O'Leary pushes back on AI data centre water criticism

Kevin O'Leary addressed criticism of AI data centres, arguing that modern facilities use far less water than many people believe and should be compared to golf courses rather than heavy industrial sites.

The Shark Tank investor made the remarks during a recent appearance on Glenn Beck's radio show while discussing the rapid expansion of AI infrastructure.

O'Leary compares facilities to golf courses

O'Leary, whose firm O'Leary Ventures is developing large-scale data centres in Utah and Canada, said advances in cooling technology have significantly reduced water consumption.

"Any new data center now is like a golf course," he said, referring to the water use of modern AI facilities.

Discussing his Utah project, he added that its first phase, with 1.4 gigawatts of power capacity, would be "no different than a golf course" in terms of water usage.

Debate over AI's environmental impact

Data centres require water to cool servers and indirectly consume additional water through the electricity needed to power them.

Critics have raised concerns that the growing AI industry could place additional pressure on local water supplies, although technology companies argue newer cooling systems are becoming increasingly efficient.

Earlier this year, OpenAI CEO Sam Altman also dismissed online claims about ChatGPT's water consumption.

"Water is totally fake," Altman said. "It used to be true, we used to do evaporative cooling in data centers, but now that we don't do that."

Calls for self-powered data centres

O'Leary argued that future AI projects should also generate their own electricity rather than rely entirely on existing power grids.

"The new rule of engagement should be this... if I'm going to bring a data center anywhere, I've got to bring my own power," he said. "I got to spend billions to build power, and then give some of it back to the grid, so we can stay competitive."

Investor faces legal dispute

Separately, O'Leary is defending a defamation lawsuit over comments alleging some opponents of his Utah data centre project were backed by the Chinese Communist Party.

He later clarified on social media that he had no evidence supporting that claim, while his attorney has said O'Leary intends to fight the lawsuit and file counterclaims.