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TeraWulf shares fell more than 7% after New York ordered a one-year pause on environmental permits for new large data centers. The company operates and plans further expansion at its Lake Mariner campus in western New York.
New York Pauses Permits for Large Projects
Governor Kathy Hochul signed an executive order on July 14 creating a statewide moratorium on new hyperscale data centers. The pause can last for up to one year while officials create new environmental and infrastructure rules for the industry.
During the review, the New York Department of Environmental Conservation will not issue discretionary permits unless the applications have already been deemed complete. The state will study the effects of data centers on electricity demand, water resources and air quality.
The order applies to new hyperscale facilities that require more than 50 megawatts of power. Existing facilities can continue operating, while the treatment of individual expansion projects will depend on their permit status.
TeraWulf Shares Close Near $19.41
TeraWulf shares closed at approximately $19.41, down 7.1% for the session. The stock traded as low as $18.63 after opening near $20.78.
Investors were concerned that the pause could delay future construction at Lake Mariner. TeraWulf has described the New York site as a major part of its Bitcoin mining and high-performance computing business. The company has not publicly confirmed that any current Lake Mariner project has been stopped by the order. Projects with completed permit applications may fall outside the temporary restriction.
Lake Mariner has Capacity For Major Expansion
TeraWulf operates Lake Mariner at the site of a retired coal plant in western New York. A long-term ground lease increased the campus to 157 acres and gave the company access to infrastructure supporting as much as 750 MW of capacity.
The company has been converting parts of the campus from Bitcoin mining to artificial intelligence and high-performance computing workloads. Its growth plans depend on securing power, construction approvals and environmental permits for additional capacity.
New York’s order creates uncertainty around expansions that require fresh discretionary permits. It does not automatically close operating buildings or cancel approvals already granted.
State will Develop New Environmental Standards
New York’s Department of Public Service will prepare a generic environmental impact statement covering data center development. Officials expect the process to take up to one year.
The state is also considering rules that would require data centers to pay more toward grid upgrades or provide dedicated clean power. Hochul plans to seek the removal of sales-tax exemptions for the largest projects.
More than 12 gigawatts of large power projects were awaiting grid connections in New York as of May. The rapid increase in AI infrastructure proposals has raised concerns about electricity prices and the cost of transmission upgrades.
TeraWulf Expands Outside New York
TeraWulf is also developing large data center projects in other states. The company recently signed a 20-year lease with Anthropic for approximately 401 MW of computing capacity at its Justified Data campus in Kentucky.
That project is expected to begin operating in the second half of 2027 and reach full capacity in early 2028. TeraWulf expects the lease to generate about $19 billion in revenue over its initial term, though the figure remains a company projection.
Projects outside New York give TeraWulf more room to grow beyond Lake Mariner. The New York campus still remains central to its current operations and future expansion.
