The myth that AI data centers are using up all the water comes from some incorrect citations that have then swept through sensationalist and poorly fact-checked (looking at you Washington Post) news stories. One major contributor was Karen Hat's "Empire of AI" which overstated the usage by three orders of magnitude. (She did publicly correct that, but you can guess how many people are interested in the non-sensational numbers).
For proportion, California almond growers use 90x the fresh water of all US data centers combined.
Which is not to say that a data center can't still be a strain for some communities, but not in a more extraordinary way than e.g. the local university wanting to maintain a golf course.
But "AI IS SUCKING UP ALL THE WATER PEOPLE NEED TO SURVIVE!!!" is a wonderfully concrete - if completely false - complaint for people uneasy about the recent advances in technology to latch onto
For what it's worth, the Blackstone-owned company says its data centers use a closed-loop cooling system that does not consume water for cooling. The reason for last year's high water use, according to QTS, was the temporary construction work such as concrete, dust control, and site preparation.
Once the campus is fully operational, it should only use a small amount of water for things like bathrooms and kitchens. But that point could still be years away, as construction and expansion in Fayetteville may continue for another three to five years.
So this has nothing to do with the building being a "data center" at all. The water used if for construction and it could just as well be a stadium or an apartment complex. But since people are talking about data centers using water we'll take any opportunity to jump in on that even if it's amplifying a misconception by mentioning it in adjacency to unrelated events.
