No, Data can fuck he just doesn't want to because he's a robot, and it's settled in court later in the series that he legally has the same rights as a person so he can't be coerced into it. Unless you want to throw out the first season's lore, which to be honest is acceptable. Why would Noonien Soong build an android that can do that? It makes no sense.
In-universe, Data wasn't designed to be the emotional retard we saw in the show. Dr Soong was a megalomaniac narcissist who wanted his "sons" (whose faces were copies of his own) to be perfect from his point of view. In light of that it makes total sense that he would give them a giant hog. But the plan was to also give them emotions and drives that would lead to them to engage in the full range of normal human activities, including romance and sex.
The plan didn't work because Lore turned out to be a giant asshole and summoned the crystalline entity, destroying their colony before he and Data were actually "finished".