alt Hacker NewsLargely not. Data center people aren't idiots. They site their projects in places with water and power, or if not power then at least gas. I don't think you'd be able to point out a project that actually exists and is competing for a scarce local water resource.
Data centers don't use much water on the scale of things. The numbers look big in isolation, but most people have no idea how much water a country really needs and isolating the numbers makes data centers look bad.