Cursor IDE

Cursor Privacy Mode

Complete guide to keeping your code private when using Cursor. Learn when to use Privacy Mode, how to configure it, and what data Cursor collects.

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The Bottom Line

By default, Cursor sends your code to external AI servers (Anthropic, OpenAI) for processing. Privacy Mode prevents this entirely, but disables most AI features. For sensitive projects, enable Privacy Mode. For others, use .cursorignore to exclude specific files from AI context.

Privacy Modes Compared

Standard Mode

Code context is sent to AI providers (Anthropic, OpenAI) for processing

Data Flow
Your code → Cursor servers → AI providers → Response

Pros

  • Full AI capabilities available
  • Best code completion and chat features
  • Access to latest AI models

Cons

  • Code leaves your machine
  • Processed by third-party AI providers
  • May conflict with NDAs or compliance requirements
Best for: Personal projects, open source, non-sensitive code

Privacy Mode

Code stays on your machine, no context sent to external servers

Data Flow
Your code → Local processing only

Pros

  • Code never leaves your machine
  • Compliant with strict data policies
  • No third-party data exposure

Cons

  • Most AI features disabled
  • No AI-powered code completion
  • Significantly reduced functionality
Best for: Proprietary code, NDA-protected work, compliance-required projects

How to Enable Privacy Mode

1

Open Cursor Settings

Press Cmd+, (Mac) or Ctrl+, (Windows/Linux) to open settings, or go to Cursor → Settings

Navigate to the Privacy section in the settings panel

2

Enable Privacy Mode

Find the 'Privacy Mode' toggle and enable it

This immediately stops sending code context to external servers

3

Create .cursorignore

In your project root, create a .cursorignore file

This file works like .gitignore but for Cursor's AI context

4

Add Sensitive Patterns

Add patterns for files that should never be in AI context

Include .env files, credentials, and proprietary code

5

Verify Configuration

Test by checking if excluded files appear in AI suggestions

Files in .cursorignore should not influence AI responses

Configuring .cursorignore

Even without Privacy Mode, you can exclude sensitive files from AI context using .cursorignore. Create this file in your project root and add patterns for files that should never be sent to AI servers.

Recommended .cursorignore Patterns

.env*# All environment files containing secrets
*.pem# SSL certificates and private keys
*.key# API keys and credential files
credentials/# Credentials directory
secrets/# Secrets directory
config/production.json# Production configuration with sensitive data
*.sqlite# Local database files
private/# Private or proprietary directories

Red patterns are critical security files that should always be excluded.

Compliance Considerations

HIPAA-Regulated Development

Requirement:

PHI (Protected Health Information) cannot be sent to third parties

Recommendation:

Enable Privacy Mode for any project handling health data

Risk if ignored:

Fines up to $1.5M per violation category

SOC 2 Compliance

Requirement:

Customer data must be protected according to service commitments

Recommendation:

Use Privacy Mode or verify Cursor's SOC 2 certification covers your use case

Risk if ignored:

Audit failures, customer trust issues

Client NDA Projects

Requirement:

Code cannot be shared with third parties

Recommendation:

Enable Privacy Mode and use .cursorignore for all client code

Risk if ignored:

Contract breach, legal liability

Government/Defense Work

Requirement:

Strict data handling requirements, often air-gapped

Recommendation:

Privacy Mode minimum; consider if Cursor is appropriate at all

Risk if ignored:

Clearance revocation, legal consequences

Verify Your App's Security

Privacy Mode protects your code from external servers, but what about the code you've already built? Scan your Cursor-built app for common security vulnerabilities.

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Frequently Asked Questions

What exactly does Privacy Mode disable?

Privacy Mode disables all features that require sending code to external servers. This includes: AI-powered code completion, Cursor Chat with code context, AI-powered refactoring suggestions, and codebase-aware AI features. Basic editing features continue to work normally.

Can I use Privacy Mode for just some projects?

Yes! You can toggle Privacy Mode per workspace. Keep it enabled for sensitive projects and disabled for others. Some developers maintain separate Cursor profiles for different security levels.

Is .cursorignore enough without Privacy Mode?

.cursorignore prevents specific files from being included in AI context, but other code still gets sent to external servers. For truly sensitive projects, use both .cursorignore (for defense in depth) AND Privacy Mode (to prevent any code transmission).

Does Cursor store my code?

According to Cursor's privacy policy, code sent for AI processing is not permanently stored on their servers. However, it is processed by third-party AI providers (Anthropic, OpenAI) who have their own data handling policies. For maximum privacy, enable Privacy Mode.

Can I use local AI models with Cursor?

Cursor has limited support for local models. You can configure local model endpoints, but capabilities are significantly reduced compared to cloud models. For maximum privacy with AI features, consider tools specifically designed for local AI development.

How do I verify Privacy Mode is working?

When Privacy Mode is enabled, you should see a privacy indicator in Cursor's status bar. AI features that require external processing will show errors or be unavailable. You can also monitor network traffic to verify no code is being transmitted.

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