Data centers consume...a lot...of water by design, recirculated water, does not means no water consumption. Water must be continuously added in evaporative cooling systems used by many data centers.

[1] - Cooling towers reject heat through evaporation, which uses water, not just recirculates it. Evaporated water is lost to the atmosphere and must be replaced with "make-up" water. As a result, recirculating cooling loops still require new water input to make up evaporation and blowdown losses.

[1] - https://en.wikipedia.org/wiki/Cooling_tower