Mark Cuban Warns South Dakota Communities on PBMs, AI Data Centers and Corporate Power
Northeast Radio SD News – Watertown, SD - A recent email exchange between Northeast Radio SD owner Steve Jurrens and entrepreneur Mark Cuban has unexpectedly tied together three major issues facing South Dakota: the collapse of independent pharmacies under Pharmacy Benefit Managers (PBMs), the rapid expansion of AI data centers, and legislative debates over corporate incentives and resource protection.
Cuban, who founded Cost Plus Drugs to disrupt the prescription drug market, responded directly to Jurrens’ questions about PBMs and South Dakota’s growing concerns over large‑scale data center development. His comments align closely with themes raised in earlier Northeast Radio SD reporting — and add new layers of national context.
PBMs and the Collapse of Independent Pharmacies
In April 2025, Jurrens reported on the closure of Downtown Drug, a Watertown pharmacy that served the community for more than 22 years. Owner Carole Anderson said the store was financially crushed by PBM‑controlled reimbursement rates, despite strong customer support.
Cuban’s email confirms the core of that reporting:
“The solution is to tell employers and the state to stop doing business with the big PBMs. If they stop, the pharmacies live.”
He also pointed to a lesser‑known factor:
“Tell the state pensions to stop investing in health care companies. They benefit when the big insurance companies, that own the PBMs, rip off patients and pharmacies.”
This adds a new dimension to the Downtown Drug story — suggesting that state‑level investment decisions may indirectly reinforce the same corporate structures that squeezed independent pharmacies out of the market.
AI Data Centers: Local Concerns Meet National Perspective
In May 2026, Northeast Radio SD interviewed State Representative Josephine Garcia and retired energy economist Curtis Jundt about the risks of hyper‑scale AI data centers. They warned of massive power demands, water consumption, minimal job creation, and a lack of transparency.
Cuban’s response echoes those concerns and expands on them:
“Communities need to protect themselves. Make it easy to monitor compliance. Have punitive measures with teeth… and a bond for facility closure.”
Garcia and Jundt emphasized transparency and resource protection, but Cuban’s mention of closure bonds introduces a new safeguard potentially not yet discussed publicly in South Dakota. He warned that without strict local requirements, developers can relocate projects elsewhere, leaving communities exposed.
His comments also intersect with South Dakota’s newly passed “Data Center Bill of Rights,” which bans certain tax exemptions and protects water resources. Cuban argued that such legislation is only a starting point — not a complete shield.
Legislative Cracker Barrel: Corporate Incentives Under Scrutiny
During the 39th Annual Watertown Home Show, lawmakers debated data center incentives, property tax relief, and the influence of large corporations. Opinions varied widely:
· Senator Glen Vilhauer and Representative Kent Roe argued South Dakota is losing economic opportunities by rejecting data center tax incentives.
· Representative Matt Roby emphasized protecting current utility users from rising rates.
· Senator Stephanie Sauder raised national security concerns about foreign ownership.
· Representative Dylan Jordan criticized tax shifts that burden consumers.
Cuban’s emails intersect with all of these positions. His warnings about corporate influence, resource protection, and compliance enforcement reinforce concerns raised by Roby, Sauder, and Jordan — while challenging the assumption that data centers automatically bring long‑term economic benefit.
A Converging Narrative: Corporate Power and Local Impact
Across three separate stories — Downtown Drug’s closure, AI data center expansion, and legislative debates — a common thread emerges: large corporate structures exert enormous influence over local economies, utilities, and public policy.
Cuban’s emails provide national validation of the concerns raised in Watertown:
· PBMs can financially devastate independent pharmacies.
· Data centers can strain infrastructure and require strict local oversight.
· State‑level financial incentives may unintentionally reinforce corporate dominance.
His comments suggest that South Dakota’s challenges are part of a broader national pattern — one that requires local governments, voters, and small businesses to demand transparency and accountability.
