Greenland’s freshwater reserves are ‘frozen capital’ as water becomes

Water is a finite resource — and increasingly a national security issue, analysts told CNBC. 

Water demand is expected to outpace supply by as much as 40% in 2030, according to a 2023 landmark report on the economics of water. At the same time, climate change is affecting weather patterns and once water-abundant areas are running dry. As a result, more water needs to be moved around to ensure access.

Freshwater is used in everything from manufacturing to agriculture, and demand is set to increase as the population grows and thirsty AI data centers are built.

As water is increasingly seen as a strategic asset, market watchers are looking to Greenland’s freshwater reserves as a potential resource. The Danish territory has itself recognized the strategic potential and has long looked to capitalize on the asset.

“The potential for water is manifold, since clean, fresh water can be used as drinking water and water for food production, for example, but also as bulk water for factories, farms or a contribution to bulk water supply,” according to a statement from the government of Greenland on its website. “There are many possibilities.” CNBC reached out to Greenland officials for further comment.

Resource nationalism has become a “defining” geopolitical play, he said — and that includes water. “So water has inherently become a strategic asset.”

“In my view, right now, the nations that don’t have it as a strategic asset are better positioned in the long run” because it forces them to innovate, Ramos added. He pointed to the Middle East and its investment in technologies like desalination, which converts seawater into drinking water, and Israel, which recycles most of its water. 

The United States, South America, and Canada have historically had abundant water but are facing new levels of water stress, putting them in a sticky position, Ramos said. 

To be sure, half of the world’s population experiences water scarcity for at least one month a year, throwing public health and food security into question. Notably, China is bolstering its water infrastructure. Investment hit around $182 billion alone in 2025 as part of the country’s National Water Network strategy, per a government release. The eastern power has uneven distribution of water, as does the U.S. The U.S. has its own water strategy, while the European Commission has instigated a “water resilience” plan.