It's stil a hot air dryer but if the unit is not an externally vented machine then they can also contain something to condense the steam from the drying process back into water
in theory this water will be distilled water
however...
i've been reading up about this and while the water will be free of dissolved impurities (calcium carbonate, calcium sulphate etc.). if can also have a lot of particulate impurities and dissolved gasses ( volatiles from the detergent, which is what you can smell in it ) that are blown through the system by the hot air blowers
So probably fine for steam iron, maybe fok topping up battteries, definely good for watering plants with.
but should be it be using it as coolant?
my thinking is maybe, but only if we want to increase our cleaning and water changeout routine