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The heating element whether it be electric or gas is located close to the faucet so that the water flows through and is heated on its way to the faucet therefore you need a separate unit for each sink. Above answer is called a "on demand unit", a tankless coil for a hot water boiler uses a spiral coil of copper that is bolted into your boiler, with the hot combustion gases heatintg the coil of copper that has the domestic cold water flowing thru it, heating the cold water into hot water as it travels to your faucets.

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Q: How does a tankless hot water heater work?
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