Data centers can be built in a responsible way, but the big ones aren't, instead they are built with the dirtiest and most resource consuming means possible because that is the only way to build them as fast as possible.

Responsibly built data centers of the future should be obliged not only to use closed loop systems but also actually use their huge amounts of heat instead of merely wasting it. Feeding distributed heating systems (or alternative ways of productively using that heat) should be obligatory. I know the situation is not the same as with gas power plants for example but it is incredibly wasteful not to use all that heat for something productive. We are talking about many MW here. For reference, the fairly sizeable waste incinerator plant Spittelau in Vienna has a capacity of 400 MW. There are currently data centers being built in the US with capacities higher than that and absolutely nothing productive is done with the waste heat.

Strict regulation is needed but not only that. Those gas turbines would be actually already illegal today. Laws are not enforced anymore for the oligarchs in the US. In other countries that nonsense would not fly already today.