TeraWulf Clears Key Zoning Hurdle for AI Data Center at Former New York Coal Plant
December 27, 2025
TeraWulf has secured a pivotal zoning victory for its plan to convert a decommissioned coal-fired power plant in Lansing, New York, into a hub for artificial intelligence computing. The move highlights the accelerating trend of repurposing legacy energy infrastructure, particularly in regions with established power grids, to meet the soaring electricity demands of advanced data centers.
According to local reports, the Town of Lansing’s Zoning Board of Appeals narrowly ruled in favor of the company, determining that the proposed facility at the old Cayuga Power Plant site qualifies as a permitted “general processing” use within the industrial district. This decision overturns a previous interpretation that had blocked the project. The board, however, did not uphold two other zoning arguments presented by TeraWulf.
The ruling followed a lengthy and contentious public hearing where a majority of speakers voiced opposition to the development. With this regulatory obstacle cleared, TeraWulf can now proceed to submit a formal site plan application to the town’s planning board for further review.
The project is part of a broader industry shift where companies like TeraWulf are targeting sites with pre-existing, robust electrical infrastructure to power energy-intensive AI workloads. Successfully converting the Lansing site would mark a significant step in the company’s expansion of its compute capacity dedicated to cryptocurrency mining and, increasingly, high-performance computing for AI. The outcome is being closely watched as a test case for similar redevelopment efforts across the United States, balancing economic revitalization with local community concerns.
Source: fingerlakes1
