What data centers need to consider when storing produced water

Data center operators are exploring produced water from oil and gas operations as a source for cooling. Using it could reduce pressure on potable water supplies, but storing it requires careful planning because its quality varies between sources.

In April 2026, the US Environmental Protection Agency launched its Water Reuse Action Plan 2.0, which includes accelerating water reuse for data center cooling. Water intelligence provider B3 Insight forecast that the Permian Basin would produce an average of around 22.3 million barrels of water per day in 2025, with approximately 16 million barrels per day sent for disposal.

Storage systems may need to keep produced water separate from brine, treated water, filtered water, clean water and fire-protection supplies. Tank materials should reflect the water’s salinity and mineral content to help limit corrosion. The article says fusion-bonded epoxy can suit produced water and other industrial uses; glass-fused-to-steel may work in some cases. Tank type also depends on available space, temperature exposure, access and pipework.

These choices should be settled before tender, when specifications become harder to change. Industrial epoxy and glass-fused-to-steel tanks can be designed for operating lives of around 35 to 45 years, depending on application and maintenance. The article argues that operators should consider lifetime costs, including maintenance and the challenges of taking a tank offline, as well as potential changes in water quality or site capacity.

Produced water may become part of data centers’ broader water strategies where the source and facility are close enough for the approach to work. The source article also says policy is moving in that direction, but its provided text ends before giving further detail.