Greenland's freshwater reserves seen as ‘frozen capital’ as water becomes a national security issue

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.