Why Modern Projects are Moving Away from Centralised Hot Water Tanks For years, large centralised hot water tanks have been the go-to in commercial and multi-residential building design. They’re familiar and generally considered the standard solution for reliable hot water delivery to multiple outlets. Now, as buildings move toward electrification and improved energy efficiency, the traditional model is being questioned. Large storage tanks, long pipe runs and continuous recirculation can create hidden inefficiencies that affect energy use as well as water consumption, plant space, installation complexity and long-term operational costs.