Because the increase in power consumption is lower than the increase in performance. A given workload takes less energy to complete.

They're not really wrong. Imagine the vast vast amount of energy that'd be required to power the worlds compute using 90s hardware.

Yeah, I didn't follow their logic either.

I can only think of two legit factors:

1) Somehow the energy needed to run a chilled water system is lower than a chilled air system.

2) Chilled water might practically allow the boards to run cooler, so their electrical resistance would be lower, making them more power efficient.

I would say that "ever increasing power and cooling requirements somehow equate" to bad hardware development. Why optimise when you can cool it and the client pays the electricity bill.