A storm is brewing on the shores of Cayuga Lake, and it has nothing to do with the weather. Local residents and environmental advocates are raising alarm bells over plans for a proposed Terawulf data center — a project they say is being pushed forward under a cloud of corporate deception, environmental risk, and public mistrust.
At the heart of the controversy is Terawulf’s intention to build a large-scale data center at the site of the former Cayuga Power Plant. The company has claimed publicly that it will not draw water from the lake for cooling. But critics point to Terawulf’s own investor materials that describe the facility as having access to an “industrial-scale water intake system” — a direct contradiction.
“It’s a bait-and-switch,” said one resident during a packed Town Board meeting. “They’re telling the public one thing, and telling investors something completely different. That’s not transparency — it’s manipulation.”
From cryptomining to cooling concerns
Though Terawulf frames the facility as an “AI data center,” its core business is Bitcoin mining — a high-energy, high-water-use industry that’s been criticized for its environmental footprint. The company’s Somerset, N.Y., facility — known as Lake Mariner — has already drawn complaints from nearby residents about 24/7 noise, broken promises, and lack of accountability.
“They told us the noise wouldn’t be a problem. It’s a problem,” one Somerset homeowner wrote in a letter to town officials. “The constant hum keeps us up at night. And now they’re expanding again.”
Many residents have discussed a one-year moratorium on large-scale development, but officials note the measure was already under consideration before Terawulf’s proposal. The moratorium is part of a state-funded planning effort to guide long-term growth, temporarily pausing major projects while the town develops that plan — not a reaction to any single company or project.
What’s really at stake?
The company’s press releases highlight its access to industrial infrastructure, including power, fiber optics — and critically — water intake systems. But community members say there has been no public disclosure of:
- How much water the facility will pull daily
- What temperature the water will be returned at (thermal pollution risks)
- How it could affect fish, algae, and overall lake health
- What noise and light pollution the town should expect
- Whether any long-term jobs will be created locally at all
“There’s a lot of talk about infrastructure and growth,” one commenter wrote on a widely shared Reddit thread. “But almost nothing about environmental protection or community benefit.”
A familiar playbook
Skeptics argue this isn’t the first time Lansing has been sold a dream by developers — only to be left with noise, pollution, and empty promises. The National Coalition Against Cryptomining has also stepped in, urging local leaders to investigate Terawulf’s track record and press pause before approving any permits.
“This is a company with a history of changing terms midstream,” said Ava Poeta, a spokesperson working with local residents. “If Lansing doesn’t ask the hard questions now, it may not get another chance.”
A growing movement
Dozens of letters and comments have been submitted ahead of the Town Board’s next meeting on October 15 at 6:30 p.m., calling for a halt to the project and a full Environmental Impact Statement.
“Cayuga Lake isn’t a corporate cooling pond,” wrote one Tompkins County resident. “It’s our drinking water. Our ecosystem. Our responsibility.”
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