Production line welding heads are sometimes watercooled. I've never seen a portable or stand-alone power unit with water cooling other than for TIG torches.
I am surprised there aren't any capacitors in your welder. My 300A Lincoln has six rather large electrolytics. 50 years ago it was common to use inductive filtering for DC supplies because large capacitors were very expensive. Inductor prices have since then skyrocketed whereas caps have become inexpensive. Yours is the first MIG I've ever seen without them.
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