

Phones can figure out its location using gyroscopes and accelerometer
This is plainly false.
The error stack-up from the imprecision of a phone’s MEMS sensors would make positioning basically impossible after a couple of dozen feet, let alone after hours of walking around.
There are experimental inertial navigation systems that can do what you describe, but they use ultra sensitive magnetometers to detect tiny changes in the behavior of laser suspended ultra cold gas clouds that are only a few hundred atoms large. That is not inside your phone.
Distributed computing would eliminate the water usage, since the heat output wouldn’t be so highly concentrated, but it would probably somewhat increase power consumption.
In an ideal world I think data center waste heat would be captured for use in a district thermal grid / seasonal thermal energy store like the one in Vantaa.
Of course that isn’t to say that we shouldn’t be thinking about whether we’re using software efficiently and for good reasons. Plenty of computations that take place in datacenters serve to make a company money but don’t actually make anyone’s lives better.