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Report: Google and SpaceX in talks to put data centers into orbit
(techcrunch.com)
This is a most excellent place for technology news and articles.
Well using water for cooling is a way to save money in some regions, but it doesn't even work everywhere, most data centers don't use a lot of water.
When it comes down to it, you can have a datacenter anywhere, including in space, but you do need to keep it cool. Cooling can be harder or easier in different environments, space is probably one of the hardest environments to keep electronics cool in.
I but I guess the most direct answer to your question:
They'll do it with radiators, lots of radiators. And they'll do it at 50x the price it would cost on earth. With that in mind, I welcome the space datacenters, build as many as you want. I can't think of any better way for an AI company to drive itself to bankruptcy.