The article tries to play sleight of hand with the specific instance that they cite but it seems that the loss of water is alleged to be caused by sediment from construction rather than water use.

It's not great that it happened and it is something local government should take action on, but it is also something that could have been caused by any form of industrial construction. I suspect there are already laws in place that cover this. If they are not being enforced that's another issue entirely.

Data center construction exposing weaknesses in local infrastructure is a double-edged sword; you wanna know if things need upgrading but you don't wanna be negatively affected by it.

Maybe there should be some clause in these contracts that mandate tech companies foot the bill for local infrastructure improvements.

This is not a data center issue at all, it is a construction issue, that it was a data center being constructed was incidental.

I believe there are regulations that cover things like this already.

To characterise it as representative or specific to data centers is ad best disingenuous.