Securing the New Strategic Asset: Why Water Will Define 21st Century Power

"Water is not just another resource—it is the silent currency underwriting every purchase, investment, or trade we make, from the farmer's market to the stock market." - Nature Water

Photo credit to Getty Images

While global powers focus on AI, trade wars, and cybersecurity, a more fundamental crisis is brewing: freshwater scarcity. 

Water is the foundation of agriculture, manufacturing, and energy production—industries that collectively account for about 60% of global GDP. Its economic value totals $58 trillion annually. As climate change and population growth intensify, securing reliable freshwater has become a matter of national security and long-term economic stability.

Government and industry leaders that invest properly in freshwater production will not only secure a critical resource but also position themselves for sustained growth, political stability, and geopolitical leverage. 

The growing security risk

Water scarcity is not a distant threat. By 2050:

• Global GDP could shrink by 8%, with low-income countries suffering losses up to 15%.

• Over 260 river basins will cross national borders, making cooperation—or conflict—over shared water resources a growing challenge.

• The energy transition itself will place enormous demands on water resources, with clean energy measures alone requiring approximately 900 cubic kilometers of water annually by 2030.

  
  

Despite these escalating risks, investment in water security has remained surprisingly inadequate. Several factors have contributed to this underinvestment:

1. Infrastructure vulnerabilities

   Traditional water systems are increasingly vulnerable to both cyberattacks and climate disruption. Aging infrastructure—combined with the growing threat of extreme weather events and geopolitical instability—puts vital water systems at risk. In the U.S. alone, 240,000 water main breaks occur annually, wasting 7.9 billion cubic meters of water.

   The world needs resilient, adaptable water production systems that offer protection from physical and cyber threats, and are not dependent on land or traditional infrastructure. Subsea desalination technologies, for example, operate below the surface, safeguarding vital water resources from weather extremes and geopolitical tensions. This makes them particularly valuable in water-scarce regions, where systems simply can’t fail.

2. Transboundary dependencies

   By 2050, half the world’s population will live in water-stressed regions for at least one month per year. Climate change will exacerbate this problem, disrupting rainfall patterns and increasing evaporation rates. Shared water sources—such as rivers and lakes—will either become points of conflict or cooperation, depending on how countries manage these limited resources.

   To succeed, countries that are dependent on shared water resources need to invest in securing their own sustainable water supply. Subsea desalination offers a unique advantage here. This technology is highly customizable and scalable, and requires 95% less land than a traditional desalination system.

3. Population stability

   By 2050, as many as 1 billion people could face extreme water stress. Millions will be forced to migrate and social tensions will rise. Investing in water systems that can produce freshwater at scale, leaders of growing populations and water-intensive operations will be able to access the resources they need without risking instability or unrest.
   

The $13 Trillion Water Security Opportunity

The water crisis demands action. This massive challenge represents a $13 trillion investment opportunity over the next decade, with 55% expected from private capital.

Three game-changing technologies stand ready:

• Subsea desalination - Placing critical water infrastructure below the surface shields it from climate extremes and geopolitical threats while reducing emissions and land requirements by 95%.

• Digital water intelligence - A booming market ($37B → $50B by 2028) deploying smart sensors and AI to detect threats, prevent failures, and maximize distribution efficiency before crises emerge.

• Next-gen water recycling - Creating "new" water from existing resources at a fraction of traditional costs, transforming waste streams into strategic assets.
  

The nations and companies that secure these technologies now won't just survive water constraints—they'll leverage them for decisive economic and geopolitical advantage.