State greenlights water permit for Lansing power plant amid data center backlash

The New York State Department of Environmental Conservation (DEC) has issued two crucial environmental permits to Cayuga Operating Company, owner of a power plant in the town of Lansing, New York. These permits, for water withdrawal and pollutant discharge, are for a site where Maryland-based technology company TeraWulf proposes to build a controversial data center. TeraWulf and Cayuga Operating Company are affiliated, both owned by TeraWulf CEO Paul Prager. The DEC's decision follows significant public outcry and calls from the Tompkins County and Seneca County legislatures to reject the renewals. Opponents of the data center project have voiced concerns regarding its potential impact on local water, air, and noise quality, with resistance manifesting throughout various bureaucratic decision-making processes. While the DEC stated the permits are not associated with the proposed data center and only cover current power plant operations, critics question the necessity of a water withdrawal permit, given previous claims by TeraWulf executives that the water intake system was deconstructed and would not be used for the data center. The renewed water withdrawal permit reduces the daily allowance from 245 million gallons to 1 million gallons, aligning with the facility's current operations. TeraWulf executives have indicated they will surrender this permit once the data center project receives all necessary approvals.