"Dry air reduces the risk of corrosion and electrical issues in the sensitive equipment in the data centers. The lack of humidity in water-stressed regions, such as the southwest United States, makes it an attractive location for data centers. This means that the regions in which it is “best” to locate a data center due to its arid environment has the highest marginal cost in terms of water consumption."

https://utulsa.edu/news/data-centers-draining-resources-in-water-stressed-communities/