Shark Tank’s Kevin O’Leary issues blunt data centre warning

Kevin O’Leary wasn’t quite what we expected.

Joining us via Zoom from his purpose-built television studio in Canada, the businessman was punctual, personable and even offered to record the interview on his end to improve the video quality.

It was a far cry from the blunt, sharp-tongued “Mr. Wonderful” that millions know from Shark Tank.

But the relaxed demeanor shouldn’t be mistaken for a lack of purpose. O’Leary is pitching an idea, and Australia could be the next market for one of his biggest investment plays yet.

The investor, whose fortune has been estimated at around US$400 million, has turned his attention to building the infrastructure that will power the next generation of artificial intelligence.

His latest venture, Wonder Valley, is an ambitious proposal to develop massive AI data centre campuses in Alberta, Canada, and Utah in the United States. The developments would include dedicated power infrastructure capable of supporting up to 15 gigawatts of computing capacity. If completed, Wonder Valley would rank among the largest AI infrastructure projects in the world.

O’Leary claims this isn’t simply about property development. It’s about geopolitics.

“There’s a global competition going on regarding who will control the most advanced AI models,” he said.

“It really boils down to two countries: China and the US.”

He argues the deciding factor isn’t talent or software - it’s electricity.

“If I were the Chinese, I would want to win,” he said.

“And what do you need for that? You need power.”

O’Leary points to China’s rapid expansion of electricity generation as evidence the race is already underway.

“They built 400 gigawatts of power primarily off coal-burning turbines,” he said.

“They’re winning. They’re building more power than any other country.”

The invisible infrastructure

Most people rarely think about data centres, yet they’re behind almost every digital interaction - from online banking and government services to social media and AI chatbots.

In many ways, they’re becoming as essential to modern life as airports, ports or rail networks.

Australia already has 162 operational data centres, with another 90 planned or under construction.

Because they rely on reliable electricity, fibre networks and existing infrastructure, most are built close to cities and residential communities.

That’s where the conflict begins.

Few people dispute the country needs more digital infrastructure.

The bigger question is what communities are willing to accept to keep it running.

Asked whether he’d ever seen the level of community opposition now facing the industry, O’Leary didn’t hesitate.

“No, I haven’t,” he said.

“But I’ll also say this: in the history of 250 years of the American economy, there’s never been a capital expenditure this size ever in any sector. Ever. Not even close.”

It’s worth noting that some of the fiercest opposition in the US has been directed at O’Leary’s own projects.

‘I’d live next door’

Much of the public concern centres on noise, water use and energy consumption.

O’Leary says those fears are based on outdated perceptions.

“The reason that negative narrative started was about 15 years ago,” he said.

“They used copious amounts of water. They spewed off massive amounts of heat. They were really noisy because the chips back in those days were horrific in terms of the fans that cooled them.”

Today’s facilities, he argues, are very different.

“If you look at a modern-day data centre, they don’t even look remotely like anything built before because the technology is so much better.”

His confidence goes as far as saying he’d happily live beside one himself.

“I would live beside a data centre I built,” he said.

A warning for Australia

Australia’s data centre boom is already raising serious questions about transparency, oversight and regulation at every level of government.

But as the country prepares for an AI-driven future, Kevin O’Leary believes Australia has a rare opportunity to attract billions of dollars in new investment. In fact, he’d be willing to invest some of his own money.

But, he says, success will depend less on politics than on policy.

“Government isn’t really about politicians. It’s about policy,” he said.

“Set the rules so that capital from around the world understands what they are.”

He describes Australia as an attractive destination thanks to its political stability, natural resources and skilled workforce.

“If they’re competitive, everybody will come to Australia,” he said.

“It’s safe. It has remarkable resources, highly educated people and a great entrepreneurial spirit.”

His final message to policymakers was characteristically direct.

“The only way you screw that up is with bad policy,” he said.

“So whoever’s listening in government, read my lips: don’t screw it up.”

A new 7NEWS Spotlight documentary explores the promises and pitfalls of Australia’s data centre boom - from the race to power the AI revolution to the concerns of residents living alongside these new digital factories.

WATCH: The Revolution: Inside Australia’s Data Centre Boom, Sunday 830pm on Channel 7 and 7plus