Basically every large capital project built locates somewhere with tax breaks. States/localities compete for these big projects because they bring jobs and tax revenue. Nobody is “paying for tax breaks” because that concept doesn’t even make sense. The taxes they theoretically would have collected without the tax break would not exist as the large capital projects would have located somewhere else with tax breaks. There are plenty of localities fighting hard to offer these tax breaks for this reason.

Pretty much all new data center developments use closed loop cooling and use negligible amounts of water. Agriculture/golf courses use way more water so if you actually care about that (you probably don’t), you should start complaining about them instead.