It is. A "rooter" is a piece of network equipment; a "rauw-ter" is a machine for finishing a hole in a piece of work, such as a drill-hole.
I'm perfectly willing to accept american pronunciation of technical terms in IT; IT tech-talk is a kind of jargon that most non-techs are bewildered by. There's little benefit in clinging to customary pronunciations.
But the machine for cleaning holes isn't in that category. If I were talking to e.g. a woodworker, and referred to a "rooter", I expect that would result in some mirth at my expense, for exposing my ignorance.