As somebody who has worked in UK offices for 25 years, more or less, I think that Bookworm Girl has nailed it really. If it's a scene where people are talking around a communal point, the kitchen would be far more authentically English (whilst waiting for the kettle to boil for a cup of tea).
If it has to be a water cooler, then yes, that would be typically what we'd call it, although water dispenser is something I've also heard. They are not as ubiquitous in UK offices as they seem to be in the US though.
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