I’ve worked in an office for over 25 years. I’ve never chatted with anyone at the water cooler (those, these days it is a water dispenser machine that can dispense cold or hot still water or sparkling water). I assume this water cooler chat thing must be from farther back in time.
Water cooler chat doesn’t need to involve a literal water cooler. It’s an expression for the casual chit-chat that occurs when you encounter someone in the hallway.