Cayuga Lake Watershed Network’s Position 

Based on our current understanding of the proposed 300 Megawatt AI Data Center project in Lansing and the documented environmental impacts associated with similar projects, we have serious concerns and questions about the potential impacts of this industrial development and activity in our watershed, especially given the proximity to the shores of Cayuga Lake and the adjacent, newly established NYS DEC Cayuga Shores Wildlife Management Area. 

Potential negative impacts include pollution and ecosystem degradation from construction and major excavation for the facilities, as well as noise pollution and water and energy demand during construction and operations.  

For this reason, the Cayuga Lake Watershed Network currently opposes the proposed TeraWulf AI Data Center development in Lansing and supports a Legislative Statewide Moratorium (A.115601/S.10642) on new data center development while New York establishes appropriate environmental safeguards.

We need robust statewide safeguards and a comprehensive understanding of the cumulative environmental and energy impacts of AI data center development; otherwise, under-resourced municipalities and communities across the Finger Lakes will be left to evaluate complex, large-scale proposals individually, without the tools or regulatory framework needed to protect their communities and environment.

Senate Bill S10642/Assembly Bill A11560

Memorandum In Support: Responsible Data Center Development Act

One-Year Data Center Moratorium

S.10642 – Gonzalez

A.11560 – Barrett

Bill Summary:

Places a one-year moratorium on the issuance of data center permits; requires utilities to establish an independent classification of service for large data centers; sets energy efficiency goals for data centers; provides benefits for host communities

Justification:

The rapid growth of data centers in the U.S. has led to a surge in demand for natural resources. The impacts of data centers on communities across the U.S. warrant careful review and examination by the State of New York to determine how best to protect its natural resources, people, and communities for generations to come.

According to the NY Independent System Operator’s (NYISO’s) 2025 Power Trends report, data centers are becoming major electricity consumers. By 2030, demand on the electric grid could increase by an additional 1,600 megawatts (MW). Data centers disproportionately use fossil fuels rather than renewable energy, resulting in data centers having an average carbon footprint that is 48% higher than the grid as a whole. Additionally, a tripling of data centers nationwide would require the equivalent water usage of 18.5 million households just for cooling the servers. [1]

Key Provisions

• Suspends data center permits for 1 year
• Requires hearings prior to data center permit issuance
• Requires DEC to spearhead environmental review process
• Requires independent classifications for water, electric, and gas usage
• Prohibits any rate increases by the Public Service Commission (PSC) that subsidize data center energy usage
• Authorizes NYSERDA, the PSC, and the NYS Climate Council to determine energy efficiency goals for the design and operation of data centers, including the recycling of waste heat

Requires data centers to derive increasing percentages of energy consumption from renewable

[1] Data from Sponsor’s memo – public.leginfo.state.ny.us

FAQ: I thought we already had a statewide data center moratorium in NY – how is this data center moratorium bill different from the Governor’s data center moratorium executive order?

Why Take Action?

Some background

In 2019, TeraWulf Inc. acquired an 80-year lease for the decomissioned Lansing coal power-plant. In August of 2025, they proposed using the property to build an AI data center. As AI data centers have begun to spring up across the country, their environmental impacts have become increasingly apparent.

Water & AI

Data centers traditionally use water in one of two ways; evaporative cooling (consuming water) and a closed-loop system that recirculates water. They also require significant amounts of energy often generated using water at the facilities which supply the data centers. An UNU-INWEH Report suggests, “by 2030, AI’s water use will match the needs of 1.3 billion people”. Large data centers can consume up to 5 million gallons per day, equivalent to the water use of a town populated by 10,000 to 50,000 people.