Mark Cuban urges tougher data-center deals before communities approve projects

  • Mark Cuban urged local governments to impose tougher conditions before approving data centers.
  • Cuban proposed upfront funds, guarantees and letters of credit to cover project-related risks.
  • March Gallup polling found 71% opposed data centers being built where they live.

Mark Cuban urged local governments to negotiate tougher agreements before approving data centers, arguing that communities lose much of their leverage once projects receive approval. In a series of X posts on Monday, the billionaire tech entrepreneur outlined a 10-part framework calling for towns to hire independent lawyers and technical advisers, evaluate a project’s full planned build-out, and set measurable limits on water use, noise, backup generation and infrastructure costs. Cuban said major developer commitments should include independent oversight, financial backing and practical remedies for breaches. He also recommended upfront decommissioning funds, parent-company guarantees, cash escrow or letters of credit, and protections against stranded infrastructure costs if projects are delayed or abandoned. He highlighted the risks of closed-loop cooling systems, which can still consume water during hot weather, and said conventional noise rules may not capture the low-frequency hum from cooling equipment. The framework follows Cuban’s earlier calls for communities to use publicly shared contracts, crowdsourcing and AI to improve negotiations. Public opposition remains high: a March Gallup poll found that 71% of Americans opposed a data center being built where they live, while an NBC News Decision Desk poll conducted from Aug. 20 to Sept. 1 found 69% opposed local projects, including 45% who strongly opposed them.

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