Data centers in urban areas definitely see massive resistance. Seattle straight up banned any new data centers with a capacity over 20 MW, even though water is a non-issue, and we have tons of industrial land in the south of the city.
The problem is data centers produce absolutely colossal amounts of noise that can be heard and felt for miles. Even if water is a non-issue, the noise isn’t.
95% of Seattle isn't "urban."
Put a data center next to BoAT, and nobody cares.