No, mainly they're making a lot of assumptions about what a "data center" means in the absence of any actual facts or specific details. That is a bit of a problem.
The majority of data centers are using glycol for cooling. They simply do not use a significant amount of water. Even their sprinkler systems are generally dry-pipe. About the only water they use is tfull of docium he usual kitchenette and bathroom facilities. Even the few facilities that actually do water cooling aren't being wasteful about it because water ain't free, either. Yet now for some bizarre reason, tons of people who not only don't work in data centers but can't even be bothered to do some math to think about what it would look like to evaporate thirty olympic swimming pools in one day are convinced that data centers everywhere are in the habit of destructively consuming vast quantities of water. By the same standard, your typically water-cooled gaming rig "uses" 1,500-2,000 liters of water every day. Their walls must literally melt away unless they use a thick latex paint.
They're not "driving up" electricity rates because they're paying the same rate as anyone else. If your utility has to raise rates because demand goes up, your city has already failed at managing resources effectively. Sometimes there's going to be a need to spend money to increase capacity for the local grid, and most DC operators aren't going to really flinch at footing that bill (nor would it be reasonable for a municipality to sign off on absorbing the cost of that).
Sure, there's not a lot of manpower involved in running a datacenter, but there's also just about zero crime, and nowhere else is likely to be so very carefully avoiding ever troubling the local fire department. In general, even the property taxes these places generate is still going to be a net-positive because running a properly-managed data center is typically a pretty drama-free LOB that can pay its bills on time.
Blocking them outright is simply stupid. One might as well decide to ban building any new gas stations (which tend to have even fewer people staffing them) because they're chock full of carcinogens. ...but you know, if you already had several data centers and you wanted to say, hobble future competition, it would be pretty easy to spin up a bunch of bots that do nothing but spew scary-sounding nonsense until all the panicky popcorn-eaters are repeating that nonsense, and voila, everyone has to come to your facilties for colocation because somehow increased demand isn't being met with increased competition. If you were a hostile nation state seeing a possible advantage in altering the future landscape a bit, the cost of such a campaign would practically be pocket change. But by all means, let's all jump up and down and start banning things based on what wouldn't pass muster as third-hand gossip.