AbstractTo satisfy the increasing global demand for agricultural products, the expansion of irrigation is an important intensification measure. At the same time, unsustainable water abstractions and cropland expansion pose a threat to biodiversity and ecosystem functioning. Irrigation potentials are influenced by local biophysical irrigation water availability and competition of different water users. Using a novel hydro‐economic data processing routine that considers economic criteria of water allocation via a productivity ranking of grid cells and both land and water sustainability criteria, we estimate global irrigation potentials at a 0.5° spatial resolution. We show that there is considerable technical potential to expand irrigation within local water and land boundaries. In terms of potentially irrigated areas on all global land suitable for crop production, 2,144 Mha could be irrigated within land and water environmental boundaries when only considering biophysical criteria. However, not all of these areas would actually be irrigated under consideration of irrigation costs. Of these, only 698 Mha (330 Mha) have a yield gain of more than 300 (600) USD ha⁻¹ under the current crop mix valued at their current commodity price (economic irrigation potential).