We present performance results of a mixed-precision strategy developed to improve a recently developed massively parallel GPU-accelerated tool for fast and scalable simulation of unsteady fully nonlinear free surface water waves over uneven depths (Engsig-Karup et.al. 2011). The underlying wave model is based on a potential flow formulation, which requires efficient solution of a Laplace problem at large-scales. We report recent results on a new mixed-precision strategy for efficient iterative high-order accurate and scalable solution of the Laplace problem using a multigrid-preconditioned defect correction method. The improved strategy improves the performance by exploiting architectural features of modern GPUs for mixed precision computations and is tested in a recently developed generic library for fast prototyping of PDE solvers. The new wave tool is applicable to solve and analyze large-scale wave problems in coastal and offshore engineering.