What data centers need to consider when storing produced water

Data center water use is under growing scrutiny and the sector’s ability to add capacity at the pace required will depend partly on how well it manages demand without placing unnecessary pressure on potable supplies.

One source being considered is produced water from oil and gas operations – particularly in the next few years, with trial projects launched, and contracts in progress.

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 among its priorities.

The scale of the opportunity is considerable.

According to forecasts from water intelligence provider B3 Insight, the Permian Basin was expected to produce around 22.3 million barrels of water each day on average during 2025, with approximately 16 million barrels a day going to disposal.

Where that water can be efficiently repurposed for data center cooling, there is an opportunity to put an existing industrial stream to productive use while reducing demand on potable supplies.

Making that work in practice requires infrastructure that can manage variable water quality, keep different streams separate and maintain a reliable supply, making storage a critical part of the solution.

Making produced water work Produced water can vary considerably between sources.

It may be brackish, highly saline, or it may contain minerals and other substances that need to be considered when the tank and sealant are specified.

The storage system therefore needs to be designed around the water that will actually arrive on site.

Data centers can already require separate storage for brine, pre-treated water, treated industrial water, clarified water, filtered water, clean water and fire protection.

Produced water would add another duty to a system that may already contain several different water streams, each requiring its own capacity and operating conditions.

Those differences should guide the material selection to protect against corrosion and extend the working life of the tank.

Fusion-bonded epoxy can be well suited to produced water and other industrial water duties, combining corrosion resistance with a robust finish that stands up well during transport and installation.