TeraWulf Affiliate Approved to Draw 1 Million Gallons Per Day From Cayuga Lake

The New York Department of Environmental Conservation (DEC) has approved a permit allowing Cayuga Operating Company, an affiliate of data center developer TeraWulf, to withdraw approximately 1 million gallons of water daily from Cayuga Lake until 2031. This water is designated for "system maintenance, sump pumping, and dust control." The decision has drawn criticism, particularly from Tompkins County Legislator Deborah Dawson, who found it "absolutely bewildering." The Tompkins County legislature had previously passed a resolution urging the DEC to reject the permit, citing unspecified water use in the original request. Environmental groups Cayuga Lake Environmental Action Now (CLEAN!) and FLX Strong, which raised energy and environmental concerns about TeraWulf's planned data center at the former Milliken Station power plant, sued the developer in January to block the project. John Dennis, co-founder of CLEAN!, expressed less concern over the water withdrawal permit itself, noting that it would be illegal to transfer the permit to TeraWulf, and any other party would need a new permitting process. A DEC spokesperson stated that the new permit drastically reduces the allowable withdrawal from 245 million gallons to 1 million gallons per day, referencing the amount Milliken Station previously could withdraw. However, Dennis disputes this, noting the reduction is not from current Cayuga Operating Company withdrawals. Dawson also suggested that DEC's decision might be influenced by "overarching policy decisions made in Albany." The Town of Lansing is slated to review TeraWulf’s data center plans on April 27.