Mark Cuban’s Data Center Checklist for Towns: Demand Enforceable Protections Before Approval

Mark Cuban is urging local governments to secure enforceable protections before approving data centers, while towns still have leverage. His framework centers on making every major developer promise measurable, independently overseen, financially backed, and paired with a practical remedy if it is broken.

The takeaway for officials: do not rely on broad assurances. Put limits, oversight, and consequences into the approval process before a project moves forward.

Cuban said towns should hire their own lawyers and technical advisors, assess the full planned build-out, and impose clear limits on water consumption, noise, backup generation, and infrastructure costs. He also called for upfront decommissioning funds and guarantees from financially credible parent companies.

He specifically warned that “closed-loop” cooling systems can still consume water during hot weather, and that conventional noise limits may not capture the low-frequency hum from cooling equipment.

Cuban also emphasized protection against stranded infrastructure costs if a data center project is delayed or abandoned. His proposals included upfront decommissioning funds, parent-company guarantees, and cash escrow or letters of credit before construction begins.

For towns, the practical lesson is to plan for the downside as carefully as the headline benefits, including construction employment, tax base, and infrastructure investment.

The broader context is difficult for data center developers. Business Insider reported that a Gallup poll conducted in March found 71% of Americans opposed having a data center built where they live, compared with 53% who opposed a nearby nuclear power plant.

The Environmental Health Project says data-center cooling systems and diesel generators can create a constant hum audible to nearby residents, and warns that cooling needs can consume large amounts of water in regions where supplies are already scarce. Cuban described his latest framework as a work in progress, but its message is clear: once a town grants approval, much of its negotiating power is gone.