Power can be represented as $F \cdot v$. The thrust force on a pipe discharging fluid is $F = v \frac{dM}{dt} = m v^2$. Thus, Power $= F \cdot v = (m v^2) v = m v^3$. However, only half of this work goes into the water's kinetic energy, yielding $\frac{1}{2} m v^3$.