“Even with newer systems that offer closed loop, the water needs to be replaced from evaporation and that's where the impact is to our local water sources.”
You are right, and we want to say so plainly.
Some data systems, especially the earlier ones ten or fifteen years ago, used over a million gallons of water per day. Newer designs use dramatically less, and we are checking a report that at least one recently built system uses none at all. Unverified — we are checking this and will post what we find
“Closed loop” is a term that gets thrown around and it shouldn't be. A closed-loop system circulates its cooling water instead of consuming it, but it still loses water to evaporation and still needs replacement water. It is less. It is not zero. A number of facilities marketed as closed loop are in fact hybrid systems.
The useful response isn't to argue about the label — it's to demand a figure. Gallons per day, in writing, enforceable, on a meter someone local can read. A buyer unwilling to put that on paper has told you what you need to know.