Re: "it eliminates the need for air-conditioning units to cool servers"
Actually, that was the problem these systems are literally fixing. You want more efficient systems even if they individually run hotter. But much like the problem of adding highway lanes, describing the tradeoffs is harder than it looks. Finding a good balance is more art then science, and is more about understanding the problem and tradeoffs. About the only constants in either highways or server thermal management are that No new lanes/Just add more lanes and "More Cores/More floors" are that the WRONG answer is almost always either extreme.
In the case of your post, the core issue you raise could be restated as "build and use the most efficient gear you can, but don't waste the power you are using, regardless of how efficient the servers are running"
Proof of work cryptocurrencies being the poster child for this, but ML driven stuff that hasn't been thought through is also setting large piles of money on fire on bad models that will inevitably be re-trained four or five times before being abandoned as defective.
That said these boxes with their 400w CPUs and 700w GPUs may be replacing 3-4 older servers, and they may draw in the mid double digits when idling out. Some even lower. Dumping air cooling has taken way longer than it should have, as it's horrible from an efficiency standpoint. Immersion is one approach to helping that, but you can also get great gains from block chillers like you see on high end gaming rigs. Industry just hasn't standardized on the specs for a "cooling bus" as well as other parts of the machines.
Ideally, the modular rack format would include a rack loop and a bottom of rack heat exchanger (to much lives top of rack these days, and the big boys are used to cooling being under floor tiles anyway) hooked to each chassis with an internal cooling loop and it's own exchanger that will be hooked to the rack. You loose a little efficiency there, but the trade of is better isolation for the racked gear, preserving the ability to quickly rip and replace gear on the fly.
Immersion systems squeeze a bit more thermal efficiency, which adds up, but it makes servicing gear a trial, as you have to "drain the tank" or "go fishing" to service parts. A fair trade off for bit barns, but less likely to appeal to those in smaller on-prem or edge sites.