If the land it's being built on was previously thirsty farmland it may be a net positive in water usage
It's the same way we don't subsidize farmers to grow bananas in Alaska, and then pretend that bananas would disappear if we stopped the subsidies.
Anyway, Ag shifted production to the Southwest because when you don't pay the actual value of the water, it's great - lots of sun, long growing season, basically free water = cheapest production.
When water costs money....you'll see quite a bit of that production shift back up north.