Data center cooling towers can be closed- or open-loop, and even operate in a hybrid mode depending on demand and air temps/humidity. Problem is, the places where open-loop evaporative cooling works best are arid, low-humidity regions where water is a scarce resource to start.
On the other hand, several of the FAANGS are building datacenters right now in my area, where we're in the watershed of the largest river in the country, it's regularly humid and rainy, any water used in a given process is either treated and released back into the river, or fairly quickly condenses back out of the atmosphere in the form of rain somewhere a few hundred miles further east (where it will eventually collect back into the same river). The only way that water is "wasted" in this environment has to do with the resources used to treat and distribute it. However, because it's often hot and humid around here, open loop cooling isn't as effective, and it's more common to see closed-loop systems.
Bottom line, though, I think the siting of water-intensive industries in water-poor parts of the country is a governmental failure, first and foremost. States like Arizona in particular have a long history of planning as though they aren't in a dry desert that has to share its only renewable water resource with two other states, and offering utility incentives to potential employers that treat that resource as if it's infinite. A government that was focused on the long-term viability of the state as a place to live rather than on short-term wins that politicians can campaign on wouldn't be making those concessions.
This is actually becoming somewhat commonplace. For example, in many cutting-edge cancer therapies, blood is drawn from the patient, processed in tissue-culture suites on site to extract the patient's immune cells and sensitize them to some marker expressed by their specific cancer cells, and then the modified immune cells are returned to the patient room and transfused back into their bodies. It's not cheap per se but it's something that most top-tier cancer centers can do, and to do the similar process of extracting stem cells, inducing them to transform into pancreatic islet cells, and transplanting those into the patient's pancreas isn't that big of a jump -- and it'd be cheaper than a lifetime of insulin in any case. It also points the way towards treating other kinds of organ failure without the risk of rejection, too.