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.
Sales Director, Balmoral Tanks.
Where that water can be efficiently repurposed for data center cooling, there...
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