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then whats pumping the water? the watercooling fairy?
SOME of the energy is used to turn a shaft or create a magnetic field.
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You're telling me their's no resistance then? Because if the coolant encounters any resistance then there is friction. And friction leads to heat.
Tell me what happens to flow rate when you unplugg the pump? Unless it continues to flow at full speed all of the mechanical and magnetic energy will be converted to heat (save a tiny amount lost as radiation, etc).
Seriously think about it. You have a constant flow of current going into the pump and no kinetic energy leaving the pump (in a closed loop anyway). Unless the energy builds up endlessly it has to be converted into heat and move into the coolant.
Therefore 99% of the pumps energy becomes heat and most of that enters the coolant.