A plan to redevelop the former Cayuga coal plant into a large-scale artificial intelligence data center has sparked sharp debate in the Town of Lansing, where residents and company officials are clashing over the project’s potential economic benefits, environmental impacts, and credibility.
TeraWulf, a Maryland-based company that operates similar facilities in New York, outlined its vision at an Oct. 7 town hall meeting, promising jobs, tax relief, and minimal environmental disruption. But critics and environmental advocates say the company’s assurances conflict with its past statements and record, leaving many residents calling for greater scrutiny and a temporary halt to large-scale development.
Promises of jobs and tax relief
TeraWulf’s proposal calls for redeveloping roughly 180 acres of the former Cayuga Generating Station site, which would be powered by about 50 megawatts of mostly zero-carbon energy. The company expects to create around 500 construction jobs during the buildout phase and 100 permanent positions once operations begin in late 2026.
Chief Operating Officer Sean Farrell told residents the project could generate $10 million in local tax revenue, preventing a 20% increase in the town’s tax levy. He said a home assessed at $500,000 could see an estimated savings of $180 per month once the center is operational. TeraWulf also pledged to contribute $100,000 annually to a community fund that residents could direct toward local initiatives.
Company officials emphasized that the facility would rely on a closed-loop cooling system, using only a few gallons of utility water each day, and would not draw from Cayuga Lake. They also argued that the project’s location in the state’s Zone C power grid means no increase in local electricity bills, since the zone has a surplus of zero-carbon energy.
Farrell said TeraWulf plans to spend $50 million to $80 million on infrastructure upgrades to strengthen the regional transmission network, adding that these improvements would make power delivery more reliable for area residents.
“The site is connected to the transmission grid, not the local community,” Farrell said. “These upgrades improve delivery for everyone.”
Residents question transparency and track record
Despite those assurances, many Lansing residents remain skeptical. Critics point to TeraWulf’s own investor materials describing the site’s “industrial-scale water intake system,” calling it a contradiction to public claims of zero lake usage.
“It’s a bait-and-switch,” one resident said during a recent town meeting. “They’re telling the public one thing, and investors something completely different.”
Environmental groups and local activists have also raised concerns about the company’s history. TeraWulf’s Lake Mariner facility in Somerset, Niagara County, has faced community complaints about 24-hour noise, unkept promises, and minimal oversight. Opponents fear similar issues could emerge in Lansing.
The National Coalition Against Cryptomining has urged local officials to delay any approvals until the company’s environmental record is reviewed and a full Environmental Impact Statement is completed.
Environmental questions persist
Opponents also want more details about the facility’s impact on Cayuga Lake, a critical local water source. They say TeraWulf has not disclosed how much water the data center will withdraw daily, what temperature the discharge would be returned at, or how the project could affect lake health, fish populations, or algae blooms.
“Cayuga Lake isn’t a corporate cooling pond,” one Tompkins County resident wrote in a letter to officials. “It’s our drinking water. Our ecosystem. Our responsibility.”
Noise, light pollution, and the project’s broader link to energy-intensive technologies have added to public unease. Some residents argue that while the company brands the facility as an AI data center, TeraWulf’s primary business is cryptocurrency mining, a sector often criticized for its environmental footprint.
What comes next
TeraWulf’s proposal has not yet been formally submitted for site plan review. The town’s planning board and Town Board are both expected to take up the issue later this month, with discussions on a potential construction moratorium as Lansing overhauls its zoning laws.
Supporters view the project as a chance to revive an idle industrial site and strengthen Lansing’s tax base with clean-energy infrastructure. Opponents warn that without strict oversight, the town could inherit another noisy, high-consumption industrial operation with limited local gain.
As the debate unfolds, one thing is clear: TeraWulf’s proposal has forced Lansing to confront a larger question about how rural communities balance economic opportunity with environmental and social accountability.
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