Data center opponents see executive order as partial win
Governor Kathy Hochul signed an executive order enacting a statewide moratorium on hyperscale data centers, a partial victory for groups opposing TeraWulf's proposed Lake Hawkeye data center in Lansing, NY. Opponents are continuing their fight through a lawsuit challenging the project's zoning classification and by raising environmental concerns about electricity and water usage. The state is also developing a regulatory framework and pursuing legislation to repeal sales tax exemptions for data centers.
Gov. Kathy Hochul signed an executive order last week imposing a temporary statewide moratorium on new hyperscale data centers requiring 50 megawatts or more, a move that was met with mixed reactions from groups opposing a major data center project near Ithaca. While acknowledging the order as a partial victory, opponents like FLX Strong and No Data Center FLX expressed disappointment that the governor did not sign more comprehensive legislation, the Responsible Data Center Development Act, which had been approved by the state Legislature and proposed a one-year moratorium on most New York data centers above 20 megawatts.
The local opposition targets TeraWulf's proposed Lake Hawkeye Data project, a 300-400 megawatt AI data center planned for a retired coal plant on Cayuga Lake in Lansing, near Ithaca. Opponents have collected over 20,000 petition signatures and filed an Article 78 lawsuit against the Lansing Zoning Board of Appeals (ZBA), TeraWulf, and associated entities. The lawsuit challenges the ZBA's decision to classify the data center as a "general processing facility," a classification critics argue is an overreach of existing zoning ordinances.
Environmental concerns are a primary driver of the opposition. Groups like Sustainable Finger Lakes and No Data Center FLX highlight potential strain on the state's "fragile electrical grid," increased electricity rates, and significant water usage (up to 700,000 gallons per day from Cayuga Lake for cooling). They also raise alarms about new power transmission lines through wetlands, noise pollution, and harmful emissions. Opponents are urging the Lansing Town Board and Planning Board to conduct a thorough environmental and health impact review before issuing permits, while TeraWulf maintains the project aligns with responsible development principles.
The article also notes that Governor Hochul is pursuing legislation to repeal sales tax exemptions for large data centers, citing issues found with TeraWulf's existing facility in Niagara County, which reportedly had a fire and lacked proper alarm/suppression systems. Despite the executive order, TeraWulf states it does not anticipate changes to its long-term development plans for Lake Hawkeye, as the local planning and review process in Lansing is ongoing. Opponents vow to continue their fight, pushing for the full legislative moratorium and urging community involvement in local planning board meetings.