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I'm wondering if there are losses of water. Like leaks etc. If it's a really large amount of water even a small percentage could be a lot. I'm really just spit balling here though really. I think that's a pretty efficient use of water actually. The thermal conductivity is high compared to air and any cooling techniques which don't include AC are surely better overall.
A water leak would either ruin the equipment if indoors or ruin the equipment if outdoors and not refilled on time. Considering those servers are their bread and butter, I'm going to assume they're going to fix any leaks pretty quickly.
There's lots of places these systems can leak that aren't a big deal. They almost definitely leak to some degree. They also likely leak less than the municipal water supply does.