It does, actually. When a cylinder expands, the ID and the OD increase. It doesn't close in on itself.However, that does not immediately mean that the volume of the tank increases. It could expand both inward and outward without further information.
When it gets hot, all of the atoms more further apart from each other. If you think of the atoms on the interior wall, the only way they can move further apart is for the interior diameter to increase. If it decreased, they'd all be getting shoved closer to each other.