In this paper, we propose an analytical approach to study the impact of floating point (FLP) precision variation on the square root operation, in terms of computational accuracy and performance gain. We estimate the round-off error resulting from reduced precision. We also inspect the Newton Raphson algorithm used to approximate the square root in order to bound the error caused by algorithmic deviation. Consequently, the implementation of the square root can be optimized by fittingly adjusting its number of iterations with respect to any given FLP precision specification, without the need for long simulation times. We evaluate our error analysis of the square root operation as part of approximating a classic data clustering algorithm known as K-means, for the purpose of reducing its energy footprint. We compare the resulting inexact K-means to its exact counterpart, in the context of color quantization, in terms of energy gain and quality of the output. The experimental results show that energy savings could be achieved without penalizing the quality of the output (e.g., up to 41.87% of energy gain for an output quality, measured using structural similarity, within a range of [0.95,1]).