water based cooling that pulls in naturally cool water from a lake or ocean and then dumps the warm water back into it can do weird things to the environment. not always bad, but often bad.
and when data centers use tap water for cooling, it can raise utility prices and reduce availability, especially if the data center is in a hot dry place that already has water availability issues (which many of them are).
but yeah, it's not like they're erasing the water from existence. almost nothing does that - and most water use gets cycled back into aquifers at some point. it's just a matter of how long that takes, the rates of use and replenishment in each area, and how any given use of water impacts that.
i live in a place with plentiful fresh water, and i don't really judge Lawn Guys out here who spend a lot of water keeping their grass green and nice. i think it's a silly hobby, and would prefer they just let local plants grow instead, but i'm not concerned their watering is wasteful to the point of immorality. i do feel that way about Lawn Guys who live in warmer, dryer places than here, where water scarcity is a real problem though.
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