Of course water is not destroyed. It gets contaminated. And to clean it up, you need energy. Basically, we can simplify those equation to pretty much single argument: energy. Whatever you do, it needs energy. And people really really comes very lighty to that problem and waste management. If we would really like to recycle everything property I suspect global energy usage 10x fold at least.
For now, its just better (I mean more economical) to just "store" that waste somewhere.
Not in a data center. In a data center the water is either re-used (closed loop) or it's evaporated (open loop). In either case the water does not need decontamination.
Yeah, I'm not sure how water in a data center gets contaminated unless they're saying it's contaminated with heat. That can be an issue in some areas where raising the temperature of a river could have an adverse effect on life in the river, but I don't think many of these data centers put water directly back into a river.
