TeraWulf CEO Paul Prager called New York’s new moratorium on data center construction a positive development for the company. However, investors were less optimistic, sending WULF shares down about 7% on the same day.
The decline came after Governor Kathy Hochul issued a directive suspending permits for large new data center projects across the state.
Why New York Halted New Data Center Construction
Hochul signed the order as the first statewide measure to pause the development of new hyperscale data centers.
The state has temporarily suspended the approval of permits that have not yet been finalized while authorities prepare a Generic Environmental Impact Statement (GEIS). The review will examine the impact of large data centers on electricity demand, water consumption, and air quality.
The governor highlighted concerns over the industry’s growing energy and resource requirements. Authorities also plan to remove sales tax incentives for large-scale data center projects across New York.
“New York has always been at the forefront of adopting new technologies and change. We have always worked to ensure residents benefit from these advancements. Now, the rapid expansion of data centers risks increasing utility costs, putting pressure on natural resources, and creating uncertainty for New Yorkers. That is why we must take action and address these challenges proactively,” Hochul said.
Why TeraWulf Management Remains Optimistic
TeraWulf operates the Lake Mariner campus in New York and is developing an additional facility near the Lake Hawkeye site.
Like several other Bitcoin miners, the company has been shifting its focus from cryptocurrency mining toward artificial intelligence (AI) and high-performance computing (HPC) infrastructure.
According to Prager, the new regulations could actually benefit companies with existing permits and secured energy access, while making it harder for less-prepared projects to move forward.
He noted that Lake Mariner is already operational, while planned expansions involving Fluidstack and Google have completed the required permitting process.
Lake Hawkeye remains a multi-year project, and TeraWulf is exploring options for establishing on-site power generation. Prager said this approach aligns with New York’s goal of expanding energy capacity while supporting new technology infrastructure.
WULF Shares Drop Despite TeraWulf’s Confidence
Despite management’s positive outlook, investors reacted negatively to the announcement.
TeraWulf (WULF) shares fell 7.08% on July 14, closing at $19.41.
The different reactions highlight a gap between company management and investors. While TeraWulf sees the new rules as an advantage for established operators with existing infrastructure, investors remain concerned about potential delays and regulatory uncertainty.
The long-term impact of New York’s data center review on TeraWulf’s expansion plans will become clearer as the environmental assessment moves forward.
