TeraWulf’s Proposed Data Center Faces Local Delays, Pushback

TeraWulf's proposed data center project on the site of the former Cayuga Power Plant in Lansing, New York, is facing both local procedural delays and a legal challenge. At an April 27 meeting, the Town of Lansing's Planning Board deemed TeraWulf's application incomplete, requiring the company to provide more information on various aspects, including site maps, construction traffic, and lease details, before further steps can be taken. The project involves a 125-acre data center development across two phases, with a total power consumption of 300 megawatts. TeraWulf representatives stated the project would utilize a closed-loop cooling system, drawing water from Bolton Point and having no discharge into Cayuga Lake. They also highlighted potential economic benefits, including 500 construction jobs and 50-100 long-term positions, and a fund for local schools and initiatives. However, the project has drawn significant community opposition, with residents protesting and expressing hostility at the planning board meeting. Environmental advocacy groups FLX Strong and Cayuga Lake Environmental Action Now (CLEAN) have been leading figures in this opposition. They filed a petition in January with the Tompkins County Supreme Court to block the data center's development, naming the Lansing Zoning Board of Appeals (ZBA), TeraWulf, its subsidiary Lake Hawkeye, and affiliate Cayuga Operating Company as defendants. The lawsuit challenges the ZBA's interpretation that the data center qualifies as a permitted land use. On April 29, the court ruled that the petitioners have standing, allowing the lawsuit to proceed. The defendants have until May 22 to respond, with court arguments scheduled for June 18. Additionally, the Department of Environmental Conservation (DEC) approved a water withdrawal permit for Cayuga Operating Company, an affiliate of TeraWulf, to take up to one million gallons per day from Cayuga Lake, raising further questions from environmental groups and the DEC spokesperson confirming the permit is not associated with TeraWulf's proposed data center.