TeraWulf suggests it will take legal action if Lansing pursues data center ban

TeraWulf suggests it will take legal action if Lansing pursues data center ban

News ClipThe Ithaca Voice·Lansing, Tompkins County, NY·10/9/2026

TeraWulf warned Lansing officials that it may pursue legal action if the town adopts a ban on data centers that would block its proposed 150-megawatt Lake Hawkeye facility at the former Cayuga power plant. The company says it will use closed-loop cooling without drawing water from Cayuga Lake, while town officials say the project has not yet submitted a complete application.

moratoriumlegaloppositionenvironmentalelectricitywatergovernmentzoning
Gov: Lansing Town Board, Town of Lansing Planning Board, Lansing Zoning Board of Appeals, Bolton Point

TeraWulf CEO Paul Prager urged the Lansing Town Board to reject a potential data center ban and allow the company to continue planning its proposed Lake Hawkeye facility at the former coal-fired Cayuga power plant. The 150-megawatt project has drawn opposition over its energy use, potential water impacts and the company’s earlier description of lake-water intake infrastructure as critical. TeraWulf now says the facility will use a closed-loop cooling system and obtain process water from Bolton Point rather than drawing directly from Cayuga Lake.

Prager said TeraWulf would consider legal action to protect its investment if Lansing adopts a ban, although no new lawsuit has been filed in connection with the threatened action. Town Deputy Supervisor Joe Wetmore said a ban would prevent construction and that TeraWulf has not established development rights, while Town Supervisor Ruth Groff said the company has submitted only incomplete planning materials. The Town Board is exploring a total ban, and the Planning Board previously declined to accept an incomplete site plan.