If Data Centers are Heating Up, That’s Really BAD.
The digital revolution has begun to transform the entire global community. From cloud computing, on-demand video streaming, real-time AI operations, and big data analytics, nearly every modern business on the planet is becoming increasingly reliant on data centers. From New Delhi to New York, a mad rush is occurring to build these data centers at breakneck speed. These high-performance computing facilities house thousands of servers that run 24/7, generating substantial amounts of heat and consuming massive amounts of energy. The ability to efficiently cool this infrastructure isn’t just an operational preference; it’s a necessity.
While many cooling strategies exist, water-based cooling systems have become increasingly prevalent in modern data center design. As a result, water storage has emerged as a mission-critical element in ensuring uptime, efficiency, sustainability, and compliance. As a manufacturer of these large-volume tanks, we have witnessed a surge in demand with no end in sight.
In this article, we’ll explore why water storage is essential for data center cooling, the most popular types of systems being used, how storage integrates with redundancy planning, and the environmental and financial benefits that water systems offer.
Why Cooling Is Critical for Data Center Operation
Servers, switches, routers, and other IT equipment generate massive amounts of heat. For instance, the average rack-mounted machine with a power rating of 300 to 600 watts will produce 1,000 to 2,000 BTU/hr. High-performance servers, capable of up to 2,000 watts, can generate up to 6,800 BTU/hr. Additionally, the Nvidia A100, which consumes 5,000 watts, can produce a stunning 17,000+ BTU/hr. If not properly managed, this heat can lead to extraordinary downtime and mounting expenses:
- Hardware failure
- Data corruption
- Reduced performance
- Service outages
- Significant financial loss
Maintaining optimal operating temperatures—usually between 18°C and 27°C (64°F to 80°F)—is vital. Cooling systems typically represent 35% to 45% of a data center’s total energy consumption, with water-cooled systems offering both performance and energy advantages. Considering that a large data center can consume upwards of $ 1 million per month in electricity from the grid, these water-cooling systems are a major part of any operational plan, as well as a significant component of the risk management profile.
Types of Cooling Systems in Data Centers
Before diving into water storage, it’s essential to understand the types of cooling systems used and their role in water management. We have been fortunate to be involved in the construction of numerous data centers, ranging from small to large, alongside our engineering and contracting partners. Each one is unique and requires careful deployment based on the environment, geography, access to power, and a dozen other key factors.
1. Air-Based Cooling
Traditional systems rely on chilled air circulated throughout the facility. While effective, air cooling becomes less efficient as power densities rise. Traditional air-based cooling becomes less effective with the extraordinary output of a high-powered AI system.
2. Liquid Cooling (Water-Based Systems)
Water has a much higher heat transfer capacity than air, making it far more efficient for cooling:
- Chilled water systems use chilled water piped through coils in air handling units (AHUs).
- Direct-to-chip liquid cooling delivers coolant directly to the CPU/GPU.
- Immersion cooling submerges servers in thermally conductive fluid.
3. Hybrid Cooling Systems
These systems combine air and water cooling for optimized performance, especially in hyperscale or colocation data centers.
Regardless of the specific technology used, water is a cornerstone of thermal management in today’s high-density computing environments.
The Role of Water Storage in Data Center Cooling
So where does water storage fit in?
Water-cooled systems require a continuous, high-quality water supply to function. Any disruption—whether due to a municipal outage, natural disaster, or equipment failure—could spell disaster.
Key Roles of Water Storage:
- System Redundancy and Protection
Ensures backup cooling capability in case of supply failure or increased thermal load. - Fire Protection and Suppression
Many cities, states, or local governments require dedicated water storage for sprinkler and fire suppression systems in data centers. - Chilled Water Buffering
Acts as a thermal buffer for chilled water systems, particularly when integrated with free cooling or thermal energy storage (TES) systems, to achieve optimal savings and energy efficiency. - Peak Shaving and Energy Optimization
Storing chilled water during off-peak hours and using it during peak energy pricing helps reduce operating costs. - Environmental Sustainability
Properly designed storage helps reduce water consumption and minimize strain on public utilities.
Types of Water Storage Systems for Data Centers
1. Above-Ground Steel Tanks
Highly durable, customizable, and scalable, steel tanks (such as those from Steel Core) are often used for large-capacity storage. They are ideal for:
- Thermal storage – temporarily storing cold water for later use
- Rainwater harvesting – the process of collecting and storing rainwater, typically from rooftops
- Backup supply for fire suppression systems – additional water resources to help protect facilities from wildfire danger
Advantages:
- Long lifespan (30+ years with proper maintenance) – one of the most durable and long-lasting water storage solutions available
- Custom linings for potable or chilled water – all Steel Core liners are NSF 61 and NFPA 22 for drinking water
- Configurable for specific flow rates and temperature control – each tank can be customized with specific flow rates required.
2. Modular Poly Tanks
Used in smaller edge data centers or for specific process water requirements. While not ideal for large-scale operations, they are flexible and easy to maintain.
3. Thermal Energy Storage Tanks (TES)
Used in conjunction with chilled water systems to reduce peak energy loads. TES systems can store cold water or ice for use during periods of high demand, thereby improving energy efficiency.
Redundancy, Uptime, and Risk Management
The Uptime Institute’s Tier Standard classifies data centers from Tier I (basic) to Tier IV (fault-tolerant). Higher-tier data centers must maintain operations even during component or utility failures.
To meet these standards, many facilities incorporate N+1 or 2N redundancy in their cooling systems—meaning one or two backup units for every critical component.
Water storage tanks provide that backup buffer by ensuring coolant availability during emergencies, such as:
- Municipal water outages
- Power failures that affect pumps
- Cooling unit failures
- Extreme weather events
Water storage tanks are often integrated with redundant pump systems, separate piping loops, and generator-powered chillers, making them essential for achieving Tier III and IV classification.
Environmental Impact and Water Usage Concerns
While water-cooled systems are energy-efficient, they raise valid environmental concerns—particularly in regions with water stress. For example:
- Evaporative cooling towers consume large volumes of water.
- Poorly designed systems can result in excessive waste or contamination.
Sustainable Water Practices
Data centers are increasingly adopting sustainable strategies, such as:
- Rainwater Harvesting: Capturing and storing rainwater for cooling and fire suppression.
- Greywater Reuse: Recycling process water or treated wastewater for non-potable applications.
- Closed-Loop Cooling: Reducing evaporation and minimizing water intake from external sources.
- Water Efficiency Audits: Regular reviews to detect leaks, optimize cooling cycles, and adjust flow rates.
Water storage tanks play a key role in these strategies, providing the buffer and separation needed to manage multiple water sources.
Compliance and Industry Standards
Data centers must also adhere to water usage and storage regulations, particularly as governments intensify their scrutiny of resource-intensive operations. In many states, there is pending legislation to protect water infrastructure. It’s a delicate balance for any legislative body to encourage development in its state while also protecting a precious resource like water.
Relevant Standards:
- ASHRAE 90.4 – Energy standard for data centers
- Uptime Institute Tier Certification
- NFPA 75 and 76 – Fire protection standards for IT equipment and telecom facilities
- LEED Certification – Sustainability credit for water efficiency
- Local Fire Codes – Minimum water reserve requirements for suppression systems
Steel water storage tanks can be engineered to comply with seismic, wind, and fire codes, making them a wise investment for facilities seeking compliance and resilience.
Cost Considerations and ROI
Installing a dedicated water storage system involves upfront costs for tanks, pumps, piping, and integration with cooling systems. However, the long-term ROI is significant, especially in large or hyperscale data centers.
Key ROI Factors:
- Reduced Downtime Risk
Every minute of downtime costs enterprises an average of $9,000–$17,000, depending on industry. - Energy Savings
Thermal storage and chilled water systems can lower electricity bills by up to 30%. - Water Security
Prevents losses from water supply interruptions or price fluctuations. - Sustainability Credits
Supports green building certifications and enhances ESG (Environmental, Social, Governance) reporting.
Real-World Case Study: Google’s Water Strategy
Google, a leader in sustainable data center design, utilizes non-potable water sources, including reclaimed wastewater and canal water, for cooling. At several of its campuses, Google has invested in large-scale water storage and treatment systems, enabling it to reduce potable water usage and enhance energy efficiency.
Other major players, such as Microsoft and Meta, are following suit—proving that water storage is not only operationally essential but also a key sustainability differentiator.
Future Trends in Data Center Water Storage
As data centers continue to scale and decentralize (thanks to edge computing and AI infrastructure), water storage strategies will also evolve. Watch for these emerging trends:
1. Smart Monitoring & IoT Integration
Advanced sensors and controls will enable real-time monitoring of water levels, quality, and flow rates, thereby preventing leaks, improving efficiency, and supporting predictive maintenance.
2. AI-Driven Cooling Optimization
AI will optimize when and how stored water is used, taking into account weather, server load, energy pricing, and any metric that can be monitored and improved.
3. Modular Prefabricated Systems
Pre-engineered water storage modules that are faster to deploy and easier to scale across edge and modular data centers.
4. Innovation in Liner Materials
New tank liners and coatings will reduce corrosion, bacterial growth, and thermal losses, making stored water safer and more stable over time.
Conclusion: Building Resilient, Efficient Data Centers with Water Storage
In the world of modern data infrastructure, cooling is at the center of uptime needs, and water is at the center of cooling. Without reliable water storage, even the most advanced data centers are vulnerable to thermal risks, downtime, and environmental inefficiencies, and in turn, massive operational losses.
Whether you’re building a new hyperscale facility or retrofitting an existing one, incorporating high-capacity, compliant water storage tanks is a strategic move. These systems not only ensure continuous cooling but also support sustainability, cost control, and regulatory compliance.
As demand for data and energy efficiency continues to grow, water storage isn’t only essential but also a key component of intelligent infrastructure management.
Connect with the professional at Stee Core Tanks to discuss your new project.
About the Author
Eileen Harlin
As Vice President of Steel Core Tank, Eileen Harlin is a driving force behind our growth and success. With over a decade of specialized experience in the tank industry since 2011, she brings a deep understanding of the nuances within this niche field, gained through her work with multiple manufacturers.
Eileen oversees our sales and project management teams, staying closely involved in every stage of the process. Known for her negotiation skills, tank consulting expertise, and ability to collaborate seamlessly with engineers, architects, and clients, she ensures every project meets the highest standards.
Highly devoted to her position and incredibly knowledgeable, Eileen’s leadership continues to inspire those around her while delivering exceptional value to our clients.
Outside of work, she loves spending time in nature, enjoying live concerts, and being with her three children. Family-oriented and an animal lover, she brings the same dedication and passion to her personal life as she does to her professional role.
