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You're asking me to speculate about a hypothetical. Depending on the type of nuclear fusion that actually comes to be .... maybe.
Regardless of the fusion process itself, which might require prodigious amounts of heavy water or maybe even normal water I don't know.
There's what do you do with the heat, so in a traditional power plant, you generate heat, the heat is used to create steam, and the steam is used then generate electricity or do other types of useful mechanical work. This could be a closed circuit design, but it might be easier to have open circuits if you have available water. But once the water, steam has done the work, you might have to recycle it recapture it, cool it down. IE evaporative towers...
Could you build a nuclear power plant, or even a fusion power plant, that runs in the desert? Yes probably. Would it be more expensive than the equivalent plant near water source? Yes of course...
Ah, that you for your detailed response
Look at Helion. Their tech is kinda great and shows a lot of promise. Their fusion implementation dispenses with the whole "boil water to spin a turbine" method of power generation entirely. They rely on induction and the strong magnetic flux that the fusion process releases to directly convert the fusion process into electricity. Honestly, is is pretty genius. Further reading: Their patants Technology Review article