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"The drinking water used in data centers is often treated with chemicals to prevent corrosion and bacterial growth, rendering it unsuitable for human consumption or agricultural use. This means that not only are data centers consuming large quantities of drinking water, but they are also effectively removing it from the local water cycle."
https://utulsa.edu/news/data-centers-draining-resources-in-water-stressed-communities/
"Dry air reduces the risk of corrosion and electrical issues in the sensitive equipment in the data centers. The lack of humidity in water-stressed regions, such as the southwest United States, makes it an attractive location for data centers. This means that the regions in which it is “best” to locate a data center due to its arid environment has the highest marginal cost in terms of water consumption."
https://utulsa.edu/news/data-centers-draining-resources-in-water-stressed-communities/
@gerrymcgovern
Note: you very definitely want ambient relative humidity levels of 45-50% in a data centre: high humidity corrodes and low humidity is a static electricity bonanza, so you don't want (very) dry (or v humid) air internally.
Data centres in dry areas were handy because evaporative cooling could be used externally in summer, which was more efficient in electricity terms but wastes water. Iceland would be a better location for resource efficiency, but the latency would hurt.