The Town of Lansing is moving toward a potential ban on data centers after months of debate over TeraWulf’s proposal to redevelop the former Milliken power plant site, with a majority of Town Board members signaling Tuesday that they are increasingly unwilling to regulate an industry they believe may be fundamentally incompatible with the community.
The board did not enact a ban at its Sept. 29 special meeting. Instead, it directed town attorney Megan Doherty to prepare a draft local law that would prohibit data centers, giving board members something concrete to review before deciding whether to formally introduce the measure and schedule a public hearing.
That distinction is important. TeraWulf’s Lake Hawkeye project has not been rejected, and Lansing has not yet changed its zoning. But after a public input session dominated by residents calling for an outright prohibition, the board’s discussion showed a clear shift toward a ban rather than another temporary moratorium.
Town Supervisor Ruth Groff said she favors a total ban, while several other board members said they want to see prohibition language drafted. Even members who raised concerns about losing a potential economic development opportunity appeared increasingly skeptical that a moratorium or tighter regulations would solve the town’s concerns.
The result puts Lansing on a path that could fundamentally change the future of the former coal-fired power plant property — and potentially trigger a legal fight over a project that has already been under town review for nearly a year.
Why Lansing is reconsidering the project now
The immediate catalyst for Tuesday’s meeting was Gov. Kathy Hochul’s Executive Order 62, issued July 14.
The order established a temporary state-level moratorium affecting certain data centers while New York develops higher standards for the industry. But the state’s action does not stop local governments from reviewing applications.
Instead, it creates an unusual situation for Lansing.
The order prevents the state Department of Environmental Conservation from issuing discretionary permits for data centers of 50 megawatts or more until the state Department of Public Service completes a broader environmental review. That review is expected to examine electricity demand, water use and quality, air quality, noise and impacts on disadvantaged communities.
At the same time, Empire State Development has been directed to develop a framework intended to help municipalities negotiate economic benefits and mitigate negative impacts from data centers.
Lansing’s problem is that its own review process isn’t automatically paused while the state does that work. Town officials have warned that Lansing could spend substantial money and staff time reviewing a project only to have state requirements change later or force additional work.
The town outlined a series of unanswered questions before Tuesday’s meeting, including whether recommendations from the state’s eventual environmental review could affect a project Lansing had already reviewed and whether the town could be forced to revisit work it had completed.
Officials said nearly 40 New York municipalities have adopted data center moratoriums since the beginning of 2026, while others have moved toward bans or taken no action.
That left Lansing with three basic options Tuesday. Continue under the existing process, pursue another moratorium or begin working toward a prohibition.
By the end of the meeting, the board had largely moved away from the first option.
Residents overwhelmingly call for a ban
The meeting drew roughly 200 people, according to a board member’s estimate, and speaker after speaker urged Lansing to prohibit data centers and cryptocurrency mining.
Their objections covered a broad range of issues: electricity demand and rates, noise, water quality, construction impacts, light pollution, the site’s proximity to Cayuga Lake and nearby wildlife areas, potential litigation costs, climate impacts and questions about how many permanent jobs a large data center would ultimately create.
Some of the most personal comments came from people living near the former power plant.
Lisa Peter, who said she lives on Milliken Station Road Extension near the site, focused on the potential loss of quiet at her home. Others living along Cayuga Lake or across the lake argued that industrial noise travels considerable distances over the water and said the project’s effects would not stop at Lansing’s municipal boundaries.
Other residents questioned whether Lansing could effectively regulate a data center after it was built. Several argued that even a prohibition limited to large facilities could invite developers to seek variances or structure projects in ways that would test the town’s rules.
Those comments became a significant part of the board’s later discussion.
Not every speaker supported a ban.
Lansing resident Larry Caffels argued that prohibiting the industry now would be premature. He said the town already has a process for reviewing TeraWulf’s application and could use the state’s pause to continue studying the issues and developing appropriate regulations.
If the town eventually determines that its concerns cannot be resolved through regulation or agreements, he argued, a ban could still be considered later.
TeraWulf asks town to keep review alive
TeraWulf also directly addressed the board.
Pace Rally, the company’s vice president of project development, said he will take a more active role leading the Lake Hawkeye project and asked Lansing to allow the existing review process to continue.
Rally acknowledged the concerns surrounding noise, light, water, environmental impacts and electricity rates but argued that those issues are precisely why the planning and technical review should continue.
“The town has asked questions and requested additional information,” Rally said. “We’ve listened, done substantial additional technical work, and are making meaningful changes to the site plan in response.”
He said TeraWulf isn’t asking for special treatment or a predetermined approval.
“We’re asking to keep the process open, to keep doing the work, answer the questions, and have the project evaluated on the facts,” Rally said.
According to a statement from Tompkins County Legislator Mike Sigler, Lansing’s Planning Board has been reviewing a roughly 300-page proposal and submitted an initial round of questions to the developer. Responses were expected within about a month.
Sigler has raised concerns about abandoning the project, arguing that the proposed development could produce significant tax revenue and other community funding at a site that has remained dormant since the power plant closed.
Those figures and economic projections were not independently established during Tuesday’s Town Board discussion.
Board shifts toward prohibition
Once public comment ended, the discussion among Town Board members quickly showed where the debate was heading.
Groff said the community’s position had become clear and that she was inclined to support it.
“At this point, I’m in favor of a total ban,” Groff said.
Councilmember Joseph Wetmore similarly questioned what another six months or year of study would accomplish.
About a year ago, Wetmore said, he had been looking for regulations that could make a data center compatible with Lansing. Over time, he said, the possibility of finding that regulatory balance appeared increasingly remote.
“I’m not sure what information you think we’re going to gather in the next six months to a year that would make data centers sound like a good idea for our community,” Wetmore said later in the discussion.
He ultimately summarized his position more directly: “I think we’re getting to the point where we just need to rip off the bandage and say no.”
Councilmember Lori Hemmings also said she was interested in reviewing a total ban, while expressing concern that state regulations might eventually prove insufficient or reduce Lansing’s ability to control what happens locally.
Councilmember Judy Drake spent more of the discussion wrestling with whether a moratorium could give Lansing time to develop restrictions for smaller data centers.
Her concern centered heavily on economic development.
Drake said Lansing needs additional commercial and industrial development as the town confronts tax increases, and she questioned what viable uses could replace the proposed data center at the former power plant.
But by the end of the discussion, she too was leaning more heavily toward reviewing a ban, citing the potential cost of enforcing detailed regulations and defending them through litigation.
“I certainly am looking at a ban more and more, quite frankly,” Drake said.
Could Lansing allow smaller data centers?
One of the key questions Tuesday was whether Lansing could prohibit hyperscale facilities while allowing smaller data centers.
A 10-megawatt threshold surfaced during the discussion as one possible dividing line.
Groff was skeptical.
She pointed to concerns that allowing smaller facilities could give developers an avenue to seek variances for larger projects. Other board members similarly questioned whether creating an elaborate regulatory structure would expose Lansing to years of enforcement disputes and legal expenses.
Drake raised another practical question: If most of the board ultimately supports a ban, would directing attorneys to develop a moratorium and regulations simply consume more town money before reaching the same result?
That appeared to help move the discussion toward drafting a prohibition first.
Doherty told the board that a ban would not necessarily lock Lansing into that policy forever. Because the prohibition would be accomplished through zoning, a future Town Board could amend the zoning law if technology, circumstances or state law changed.
That point appeared important to members concerned about closing the door permanently on an industry that could look substantially different decades from now.
Former power plant’s future remains a major question
The economic argument is complicated by the unusual nature of the Milliken property.
Town planning staff described the former power plant property as a significant brownfield with different levels of contamination and development potential across the site.
A large coal ash pile remains a DEC-regulated landfill and would continue to be regulated regardless of what happens elsewhere on the property. Other areas, including forested portions of the property, may potentially be redeveloped, although contamination associated with decades of power generation could require remediation.
Planning staff told the board that some portions could potentially accommodate solar development and that state brownfield programs and other funding sources could help with remediation.
The site also has infrastructure that makes it unusual. High-voltage transmission lines are concentrated in northern Lansing around the former Milliken property, making the area attractive for energy-related development.
That same infrastructure is one reason the property has attracted interest for a large data center.
Board members acknowledged that saying no to TeraWulf leaves a difficult question: What replaces it?
Sigler said the proposed project had been anticipated to generate about $10 million in taxes and other community funding, with much of the tax revenue benefiting the Lansing school district. He argued that the property could remain dormant without another industrial developer willing to take on the brownfield.
Town officials did not adopt those financial estimates as established figures during Tuesday’s discussion.
Several board members nevertheless acknowledged that Lansing needs additional tax base and economic development. Their disagreement was increasingly over whether a data center represents the right kind of development.
Groff said she believes the town’s ongoing zoning rewrite could eventually make Lansing more attractive to businesses by eliminating contradictory provisions and making the development process easier to understand.
Wetmore similarly argued that economic development does not mean accepting every project presented to the town.
Cost of the fight becomes part of the debate
Money is also shaping the board’s thinking in another way: the cost of processing, regulating and potentially litigating the project.
Residents repeatedly argued that a lengthy moratorium followed by detailed data center regulations could force Lansing to continue spending on attorneys, consultants and staff while eventually ending at the same place.
Groff said she has seen firsthand how much work the issue has placed on town employees.
She said continuing through a moratorium could “prolong the agony” for staff while creating additional legal and administrative expenses for taxpayers.
Drake also raised the prospect that even if Lansing developed extensive operating standards, town planning and code enforcement employees could later be responsible for enforcing them — potentially leading to stop-work orders and litigation.
Sigler said the town is anticipating the possibility of litigation and has set aside $500,000 for legal expenses in next year’s proposed budget. That budget figure was presented in Sigler’s statement and was not separately established in the meeting materials.
The possibility of a lawsuit also came up directly during the board discussion. Members did not identify a specific threatened lawsuit or say litigation was certain.
What happens next
Despite the direction of Tuesday’s discussion, there is no data center ban in Lansing yet.
Doherty will prepare a draft local law for the Town Board to review. She cautioned that the document will take time and won’t be ready immediately.
Once the language reaches a form acceptable to a majority of the board, the proposed law can be introduced at a public meeting.
A public hearing would follow, along with additional review and deliberation. Town officials also said the proposal would involve review by the Planning Board and Tompkins County planning officials before a final Town Board vote.
The public will therefore have additional opportunities to comment before any prohibition becomes law.
For TeraWulf, the decision means a project that has spent nearly a year moving through Lansing’s review process now faces a much more fundamental question than the technical details of its site plan.
Instead of deciding only how a large data center could operate at the former Milliken plant, Lansing is preparing to decide whether data centers should be allowed in the town at all.
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