Hochul Signs Moratorium on Data Center Permitting, Putting Lansing Data Center Plans in Question
New York Governor Kathy Hochul signed a one-year moratorium on new hyperscale data center permits, impacting approximately 20 projects statewide, including TeraWulf's 400 MW data center planned for Lansing. This moratorium was enacted to allow the state to develop new regulations for data center development. Local opposition groups are also suing TeraWulf and the Lansing Board of Zoning Appeals over the project's facility classification.
New York Governor Kathy Hochul has enacted a one-year moratorium on permits for new "hyperscale" data centers with capacities above 50 megawatts. This executive order, the first of its kind nationally, aims to provide the state with time to establish new regulations for data center development, putting approximately 20 projects across New York on hold.
Among the impacted projects is TeraWulf's proposed 400 MW data center in Lansing, known as Cayuga Data. This project has faced significant opposition from local groups, including No Data Center FLX and environmental watchdog Cayuga Lake Environmental Action Now!, who have organized protests and gathered over 20,000 petition signatures against the development. These groups, while supporting the moratorium, are pushing for more stringent measures, such as the "Responsible Data Center Act," which includes a broader moratorium and different utility rates for data center operators.
The moratorium is expected to directly affect TeraWulf's Lansing plans, as the site currently lacks approved permits. Opposition groups, including No Data Center FLX and CLEAN!, have also filed a lawsuit against TeraWulf and the Lansing Board of Zoning Appeals, challenging the project's classification as a "general processing facility," a term not clearly defined in Lansing's zoning code that they argue facilitates the development. This legal action will continue despite the statewide moratorium.