TeraWulf Falls 7% After New York Pauses Certain Data Center Permits

TeraWulf said a temporary pause in New York’s permitting for certain large-scale data centers will not disrupt operations at its Lake Mariner campus or its planned Lake Hawkeye development, even as investors pushed the stock lower following the state action. Shares closed down 7.08% at $19.41 on Tuesday after New York Governor Kathy Hochul signed an executive order directing the state to halt issuance of new environmental permits for some large data center projects for up to one year. During the pause, the Department of Public Service will prepare a Generic Environmental Impact Statement aimed at setting statewide standards for future developments, including reviews of electricity demand, water consumption, water quality, and air quality. Hochul also said she is pursuing separate legislation to eliminate sales tax exemptions currently available to large data centers across New York. TeraWulf executives said existing permits remain valid and the company's timeline is unchanged. Chief Strategy Officer Kerri Langlais said Lake Hawkeye remains in a multiyear development phase and that the local planning and review process already underway is separate from the state's temporary permitting pause. She added that Lake Mariner is already operating and that the expansion supporting Fluidstack and Google has secured all required permits. Langlais said the company welcomes efforts to create a clearer regulatory framework for future projects. Founder and CEO Paul Prager said on X that TeraWulf is evaluating onsite power generation for the Lake Hawkeye campus, aligning with Hochul's emphasis on adding new electricity generation. He said the company supports a well-defined regulatory framework and characterized the executive order as a constructive step for the industry. Separately, TeraWulf continues to broaden its revenue base beyond bitcoin mining by expanding into artificial intelligence and high-performance computing (HPC) infrastructure. The company recently signed a 20-year lease with Anthropic at its Justified Data site in Hawesville, Kentucky, which it expects to generate about $19 billion in revenue over the term. In its latest results, the shift in business mix became more apparent. First-quarter HPC lease revenue totaled $21 million, surpassing bitcoin mining revenue for the first time. Total quarterly revenue was $34 million, roughly flat versus $34.4 million a year earlier. Digital asset mining contributed just under $13 million. TeraWulf said the New York permitting pause does not affect its existing facilities or planned developments, while its growing AI and HPC operations continue to reshape the company's long-term strategy.