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Mark Cuban Says Data Center Economics Are 'Incredibly Profitable': Communities Should Use AI Boom to Score 'the Best Possible Deal'

Benzinga · 1d ago

Billionaire investor Mark Cuban urged cities and local governments to negotiate tougher deals with data-center developers, arguing that the booming AI infrastructure industry can afford to give communities far more in return.

Mark Cuban Wants Better Data Center Deals

On Monday, Cuban took to X to ask whether anyone has contracts between data-center developers and cities, counties or states that could be shared publicly.

His idea is to combine those agreements with crowdsourcing and AI to develop a template that gives communities stronger negotiating power when data-center companies come calling.

"The economics of a datacenter are incredibly profitable," Cuban wrote, arguing that communities should use the current AI boom to negotiate "the best possible deal" before the industry’s economics change.

The billionaire entrepreneur suggested the approach could work similarly to his previous effort involving pharmacy benefit manager contracts, where publicly shared agreements helped inform negotiations.

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Communities Could Demand More From AI Infrastructure

One commenter suggested eliminating incentives altogether and requiring data centers to generate at least 1.5 times their own power needs, provide their own water and pay higher property taxes.

Cuban dismissed that proposal as "an awful start," arguing communities should demand substantially more "in addition to those things."

Data Centers Under Fire Over Water, Power Demand

His comments come as data-center projects face growing scrutiny over electricity demand, water consumption, infrastructure costs and community benefits.

However, last week, Commerce Secretary Howard Lutnick dismissed concerns over AI data centers’ water consumption, saying that "data centers don’t use water" and labeling the criticism "propaganda by our adversaries."

President Donald Trump has also stepped up his defense of data centers, urging communities to "let Data Reign." His remarks have drawn criticism from Alexandria Ocasio-Cortez (D-N.Y.) and Republicans, including Marjorie Taylor Greene.

An NBC News Decision Desk poll conducted through SurveyMonkey from Aug. 20 to Sept. 1 found growing local opposition to AI infrastructure, with 69% of respondents saying they oppose data centers being built in their communities, including 45% who strongly oppose them.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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