Surface water reservoirs are increasingly being relied upon to meet rising demands in the context of growing population and changing climate. However, the amount of water available in reservoirs (and the corresponding trends) have not been well quantified at the global scale. Here we use satellite observations to estimate the storage variations of 7245 global reservoirs from 1999 to 2018. Total global reservoir storage has increased at a rate of 27.82 ± 0.08 km³/yr, which is mainly attributed to the construction of new dams. However, the normalized reservoir storage (NS)—the ratio of the actual storage to the storage capacity—has declined by 0.82 ± 0.01%. The decline of NS values is especially pronounced in the global south, while the global north mainly exhibits an NS increase. With predicted decreasing runoff and increasing water demand, these observed diminishing storage returns of reservoir construction will likely persist into the future.