The co2 tank can go inside or outside the refrigerator. There are three things in the long run to consider when deciding where to put the co2 tank when making a kegerator. First, just a FYI that co2 is a liquid and we use the gas the comes off of the liquid. Since it is a gas, it will expand and contract with warm and cold temperatures, allowing readings on a regulator of 800-900 psi when at room temp and about 500-600 psi when cold. We mention this as a lot of people think they have a gas leak the very first day it is in the refrigerator as they see what looks like the bottle emptying. It should level off at about 500 psi in about 48 hours. Second, most regulators work based off of a spring and a large rubber seal. Storing this cold will in the long term have more negative effect on the rubber seal then storing it at room temp. We find that ours takes longer to adjust the pressure when changing it when the regulator is cold, as apposed to when it is warm. Third, the final issue is do you have space to keep the co2 inside, or do you have room outside for the tank. With all of that said, most people I know keep the tank inside the refrigerator for convenience.
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