diff --git a/scripts/scripts-library.sh b/scripts/scripts-library.sh
index 8f77a10bc2..e98e30946a 100755
--- a/scripts/scripts-library.sh
+++ b/scripts/scripts-library.sh
@@ -296,6 +296,17 @@ function get_instance_info {
             "/openstack/log/instance-info/host_packages_info_${TS}.log" || true
           ;;
   esac
+
+  # Storage reports
+  btrfs filesystem usage /var/lib/machines > \
+    "/openstack/log/instance-info/machines_usage_${TS}.log" || true
+  btrfs filesystem show /var/lib/machines >> \
+    "/openstack/log/instance-info/machines_show_${TS}.log" || true
+  btrfs filesystem df /var/lib/machines >> \
+    "/openstack/log/instance-info/machines_df_${TS}.log" || true
+  btrfs qgroup show --human-readable -pcre --iec /var/lib/machines >> \
+    "/openstack/log/instance-info/machines_quotas_${TS}.log" || true
+  df -h > "/openstack/log/instance-info/report_fs_df_${TS}.log" || true
 }
 
 function get_pip {
diff --git a/tests/roles/bootstrap-host/defaults/main.yml b/tests/roles/bootstrap-host/defaults/main.yml
index a8190d3773..13033f3222 100644
--- a/tests/roles/bootstrap-host/defaults/main.yml
+++ b/tests/roles/bootstrap-host/defaults/main.yml
@@ -63,9 +63,14 @@ bootstrap_user_variables_extra_templates:
 bootstrap_host_swap_size: "{% if ansible_memory_mb['real']['total'] < 8*1024 %}4{% else %}8{% endif %}"
 
 ## Loopback volumes
-# Sparse loopback disks are used for Cinder, Swift and Nova (instance storage).
+# Sparse loopback disks are used for the containers if there is no secondary
+# disk available to partition for btrfs. They are also used for Ceph, Cinder,
+# Swift and Nova (instance storage).
 # The size of the loopback volumes can be customized here (in gigabytes).
 #
+# Size of the machines loopback disk in gigabytes (GB).
+bootstrap_host_loopback_machines_size: 128
+#
 # Boolean option to deploy the loopback disk for Cinder
 bootstrap_host_loopback_cinder: yes
 # Size of the Cinder loopback disk in gigabytes (GB).
diff --git a/tests/roles/bootstrap-host/tasks/main.yml b/tests/roles/bootstrap-host/tasks/main.yml
index cdbbf5eb09..e2533014a4 100644
--- a/tests/roles/bootstrap-host/tasks/main.yml
+++ b/tests/roles/bootstrap-host/tasks/main.yml
@@ -50,6 +50,15 @@
   tags:
     - prepare-data-disk
 
+# Prepare the Machines storage loopback disk
+# This is only necessary when there is no secondary disk
+# available to partition for btrfs
+- include: prepare_loopback_machines.yml
+  when:
+    - bootstrap_host_data_disk_device == None
+  tags:
+    - prepare-loopback-machines
+
 # Prepare the swap space loopback disk
 # This is only necessary if there isn't swap already
 - include: prepare_loopback_swap.yml
diff --git a/tests/roles/bootstrap-host/tasks/prepare_data_disk.yml b/tests/roles/bootstrap-host/tasks/prepare_data_disk.yml
index 8cfd01c325..0d4bc9a516 100644
--- a/tests/roles/bootstrap-host/tasks/prepare_data_disk.yml
+++ b/tests/roles/bootstrap-host/tasks/prepare_data_disk.yml
@@ -45,18 +45,20 @@
   with_items:
     - "parted --script /dev/{{ bootstrap_host_data_disk_device | regex_replace('!','/') }} mklabel gpt"
     - "parted --align optimal --script /dev/{{ bootstrap_host_data_disk_device | regex_replace('!','/') }} mkpart openstack-data1 ext4 0% 40%"
-    - "parted --align optimal --script /dev/{{ bootstrap_host_data_disk_device | regex_replace('!','/') }} mkpart openstack-data2 ext4 40% 100%"
+    - "parted --align optimal --script /dev/{{ bootstrap_host_data_disk_device | regex_replace('!','/') }} mkpart openstack-data2 btrfs 40% 100%"
   tags:
     - create-data-disk-partitions
 
 - name: Format the partitions
   filesystem:
-    fstype: ext4
-    dev: "{{ item }}"
+    fstype: "{{ item.fstype }}"
+    dev: "{{ item.dev }}"
   when: data_disk_partitions.rc == 1 or bootstrap_host_data_disk_device_force | bool
   with_items:
-    - "/dev/{{ bootstrap_host_data_disk_device | regex_replace('!(.*)$','/\\1p') }}1"
-    - "/dev/{{ bootstrap_host_data_disk_device | regex_replace('!(.*)$','/\\1p') }}2"
+    - dev: "/dev/{{ bootstrap_host_data_disk_device | regex_replace('!(.*)$','/\\1p') }}1"
+      fstype: "ext4"
+    - dev: "/dev/{{ bootstrap_host_data_disk_device | regex_replace('!(.*)$','/\\1p') }}2"
+      fstype: "btrfs"
   tags:
     - format-data-partitions
 
@@ -64,10 +66,14 @@
   mount:
     name: "{{ item.mount_point }}"
     src: "{{ item.device }}"
-    fstype: ext4
+    fstype: "{{ item.fstype }}"
     state: mounted
   with_items:
-    - { mount_point: /openstack, device: "/dev/{{ bootstrap_host_data_disk_device | regex_replace('!(.*)$','/\\1p') }}1"}
-    - { mount_point: /var/lib/lxc, device: "/dev/{{ bootstrap_host_data_disk_device | regex_replace('!(.*)$','/\\1p') }}2"}
+    - mount_point: /openstack
+      device: "/dev/{{ bootstrap_host_data_disk_device | regex_replace('!(.*)$','/\\1p') }}1"
+      fstype: ext4
+    - mount_point: /var/lib/machines
+      device: "/dev/{{ bootstrap_host_data_disk_device | regex_replace('!(.*)$','/\\1p') }}2"
+      fstype: btrfs
   tags:
     - mount-data-partitions
diff --git a/tests/roles/bootstrap-host/tasks/prepare_loopback_machines.yml b/tests/roles/bootstrap-host/tasks/prepare_loopback_machines.yml
new file mode 100644
index 0000000000..36ad49d499
--- /dev/null
+++ b/tests/roles/bootstrap-host/tasks/prepare_loopback_machines.yml
@@ -0,0 +1,37 @@
+---
+# Copyright 2018, Rackspace US, Inc.
+#
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#     http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+
+- name: Create sparse machines file
+  command: "truncate -s {{ bootstrap_host_loopback_machines_size }}G /openstack/machines.img"
+  args:
+    creates: /openstack/machines.img
+  tags:
+    - machines-file-create
+
+- name: Format the machines file
+  filesystem:
+    fstype: btrfs
+    dev: /openstack/machines.img
+  tags:
+    - machines-format-file
+
+- name: Create the mount points, fstab entries and mount the file systems
+  mount:
+    name: /var/lib/machines
+    src: /openstack/machines.img
+    fstype: btrfs
+    state: mounted
+  tags:
+    - machines-file-mount
diff --git a/tests/roles/bootstrap-host/templates/user_variables.aio.yml.j2 b/tests/roles/bootstrap-host/templates/user_variables.aio.yml.j2
index 689292b474..d0489ea4f2 100644
--- a/tests/roles/bootstrap-host/templates/user_variables.aio.yml.j2
+++ b/tests/roles/bootstrap-host/templates/user_variables.aio.yml.j2
@@ -165,10 +165,6 @@ cache_timeout: {{ cache_timeout }}
 # AIO build time. Options are: [machinectl, overlayfs, btrfs, zfs, dir, lvm]
 lxc_container_backing_store: "machinectl"
 
-# Allow the container store sufficient space to build everything we need.
-#  Size is in GB:
-lxc_host_machine_volume_size: 1024
-
 ## Enable LBaaSv2 in the AIO
 neutron_plugin_base:
   - router
diff --git a/tests/roles/bootstrap-host/vars/redhat.yml b/tests/roles/bootstrap-host/vars/redhat.yml
index 559bfa70c0..905610ab51 100644
--- a/tests/roles/bootstrap-host/vars/redhat.yml
+++ b/tests/roles/bootstrap-host/vars/redhat.yml
@@ -17,6 +17,7 @@ rdo_package: "https://rdoproject.org/repos/openstack-pike/rdo-release-pike.rpm"
 
 packages_install:
   - bridge-utils
+  - btrfs-progs
   - curl
   - dbus
   - ethtool
diff --git a/tests/roles/bootstrap-host/vars/suse.yml b/tests/roles/bootstrap-host/vars/suse.yml
index 194f6d3781..19488c5c63 100644
--- a/tests/roles/bootstrap-host/vars/suse.yml
+++ b/tests/roles/bootstrap-host/vars/suse.yml
@@ -20,6 +20,7 @@ opensuse_openstack_repos:
 
 packages_install:
   - bridge-utils
+  - btrfsprogs
   - curl
   - dbus-1
   - ethtool
diff --git a/tests/roles/bootstrap-host/vars/ubuntu.yml b/tests/roles/bootstrap-host/vars/ubuntu.yml
index deb483b9b8..0a1de6ee7a 100644
--- a/tests/roles/bootstrap-host/vars/ubuntu.yml
+++ b/tests/roles/bootstrap-host/vars/ubuntu.yml
@@ -16,6 +16,7 @@
 packages_install:
   - apt-transport-https
   - bridge-utils
+  - btrfs-tools
   - build-essential
   - curl
   - dbus