The implication is clear that it is a waste, but I feel like if they had the data so support that, it wouldn't be left for the reader to infer.
I can see two models where you could say water is consumed. Either talking about drinkable water rendered undrinkable, or turning water into something else where it is not practically recaptured. Tuning it into steam, sequestering it in some sludge etc.
Are these things happening? If it is happening, is it bad? Why?
I'd love to see answers on this, because I have seen the figures used like a kudgel without specifying what the numbers actually refer to. It's frustrating as hell.
Here you go: https://en.m.wikipedia.org/wiki/Cooling_tower
Data centers use evaporative cooling towers which evaporate water to reject heat to the atmosphere.
Of course, if you're using dry cooling, it uses more electricity, so hopefully you're using solar, not a source that uses evaporative cooling to produce electricity (if in a dry climate).