"They are actually being held open 7mm by a custom 3D printed wedge. This opening allows for the screen to be used for testing as well as ample air circulation. You can’t see the temperature sensors tucked into each notebook’s keyboard area."
Air circulation makes sense. There is a vent in between the screen pivot and the base, and also the gaps in the keys allow for some heat to escape.
Agreed that the screens should be turned off, though. Could just turn the brightness down to 0.
It is a complete no-no, even if your DC doesn't say anything to you about it.
Just think of the potential loss of equipment if the sprinklers were to activate in a datacenter suite -- and if the flammable material is located in your cage, it's going to be you or your insurance covering that.
I have only seen dry-pipe water systems lately, since halon is long gone.
I did see one system that used HI-FOG sprinklers. Smaller water droplets are supposedly able to extinguish a fire with significantly less water. You're still sad, but maybe you can salvage more equipment.
I've seen a few chem agent and inert gas systems, but only when someone realized cost of equipment + loss from downtime > cost fire suppression system, which is less often than it should be.
dry pipe systems are probably the most common though.
[1] - http://www.macupdate.com/app/mac/22211/insomniax