I have the same issue. Water condenses on the metal cabinet and runs down. Humidity in the house has no impact as that humidity is handled by the AC and its drip pan. It must be the humidity in the closet. More insulation inside the cabinet would probably help so the metal cabinet wouldn't chill down but it's not a DIY project for me. Not worth the expense to have HVAC tech out to install any either. I just wipe it up.
BTW, I added 2 ft deep shelving beside the unit where the water heater tank was designed to go. We use it for a pantry and the closet being kept slightly cool is an advantage. We go into the closet at least once a day if not more.
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