Grout is fine, but it is porous and will hold bacteria so you need to seal the grout.
As an alternative, I used caulk between the tiles of my tank. It's already non-porous. I used slate tiles and a stone sealer on them so they won't hold any liquid either. Makes cleaning a breeze. Digging up grouted tiles when you want to replace them is no fun, which is another reason why I used caulk. I just slit it and pull out the tiles.
I'm one of those that likes everything to be easy to re-do, for when I get in the mood for a new project.