Gov. Hochul signed a data center moratorium. It’s unclear if it will halt TeraWulf’s plans in Lansing.
Governor Kathy Hochul enacted a statewide moratorium on data center permitting in New York via executive order to allow the state to examine the industry's impact on energy demand, water, and air quality. The moratorium's effect on TeraWulf's proposed data center in Lansing is unclear, as local permits are exempt and the company plans to continue development. An appeal related to the data center's zoning classification is currently challenged in court.
Governor Kathy Hochul signed an executive order establishing New York's first statewide moratorium on data center permitting, effective Tuesday. The measure aims to provide the New York State Department of Public Service (DPS) with time to conduct an environmental impact statement, assessing data centers' effects on energy demand, water, air quality, and the economy. During this review period, the Department of Environmental Conservation will halt state permitting for new or expanding data centers, although local permits remain exempt.
The moratorium has raised questions regarding TeraWulf's controversial data center project in Lansing. While Lansing Town Supervisor Ruth Groff has no comment on the implications, TeraWulf's Chief Strategy Officer Kerri Langlais stated that the executive order does not alter their development plans, expressing appreciation for the focus on a clear regulatory framework. The company is also exploring on-site generation for its facility, whose site plan remains incomplete with the Lansing Planning Board. Previously, the Lansing Zoning Board of Appeals granted TeraWulf an appeal classifying its facility as a general processing facility, a decision currently being challenged in court.
Advocacy groups like New York's Food & Water Watch and No Data Centers FLX welcomed the executive order as a "huge step forward" but continue to push for the Responsible Data Center Development Act, a stronger legislative bill. Ben Basem, an organizer with No Data Centers FLX, noted concerns that the executive order's 50-megawatt threshold for pausing permits is higher than the bill's 20-MW proposal, and its "up to one year" duration offers less certainty than the bill's one-year moratorium. He also highlighted that the executive order does not apply to local government permits, leaving the fate of TeraWulf's planning process uncertain.