TeraWulf (NASDAQ: WULF) secured a critical regulatory approval on Monday night when officials in Lansing, New York, voted to classify its Lake Cayuga site for permitted industrial use.
The decision resolves a zoning dispute that previously stalled the company’s plans to convert a former coal plant into a data center.
The Town of Lansing voted 3-2 to approve TeraWulf’s third appeal to categorize the facility as “general processing.” The vote allows the company to move forward without seeking additional rezoning or variances. Previous attempts to classify the site as a scientific research laboratory or a warehouse failed in recent weeks.
The town board rejected the first appeal for a scientific research laboratory designation by a vote of 4-1. A subsequent appeal to classify the site as a warehouse also failed by a 3-2 margin. The code enforcement officer previously stated on October 23 that the town zoning code did not explicitly define data centers.
Matthew Sigel, head of digital assets research at VanEck, noted the significance of the decision for the company’s outlook.
Sigel described the vote as a “true derisking event and a reminder that constructive engagement with local stakeholders can unlock critical infrastructure even in heavily regulated states.” He added that the approval resolves “the core zoning dispute that’s weighed on sentiment in recent months.”
The confirmed zoning status permits TeraWulf to advance planning and design for the Lake Cayuga site. The company targets 138 megawatts of capacity at the location by the end of 2026. Long-term plans outlined by the company aim for 400 megawatts of capacity by the end of 2027.
This regulatory win in New York complements recent capital formation for TeraWulf’s operations in the southwestern United States.
TeraWulf and its partner Fluidstack announced on December 18 the pricing of $1.275 billion in senior secured notes. The notes are due in 2030 and were issued through the duo’s Flash Compute joint venture.
Header image of AES power plant on Lake Cayuga by Philip Cohen via Creative Commons.
