Problem with data centers is that companies want to build them near densely populated areas that already have problems with water supply and high utility bills.

1. They don't HAVE to use water. Air cooling, closed loop cooling, waste-water cooling, and so on, are options. Easy to regulate. Evaporative cooling is more energy efficient though, but a complete non-issue in places with abundant water and a non-option elsewhere.

2. Datacenters have been shown to reduce utility prices. They provide suppliers with previsible long term demand which allows for cost-effective network and production planning.