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You need the water for cooling in a power plant, this is why many are built near rivers or lakes, and if they aren't they will have large manmade ponds or lakes from which to gather and dump water.

http://www.world-nuclear.org/info/Current-and-Future-Generat...

Electricity generation uses a lot of water, but it's generally not used up by electricity generation. AKA, dams take all the water from a river but a river can have 6 dams and still have significant flow, because the only real loss is evaporation. Farms on the other hand evaporate most of the water they use.

> Why does generating electricity use more water than farming?

It uses it in the sense that water touches the machinery. But it doesn't use it in the sense of the water not being available anymore.

The water is used for cooling, but it's put right back in the river it came from and can be used again by another power plant, or for drinking water.