New York Governor Signs Executive Order Suspending Environmental Permits for Data Centers

The Governor of New York has signed an executive order temporarily suspending the issuance of state-level environmental permits for up to one year. According to Foresight News, the Public Service Department will establish a regulatory framework called the 'Generic Environmental Impact Statement' to set standards for data centers during this period. The suspension will be lifted once the state finalizes the framework. The Governor's office stated that the state will assess the potential environmental impacts of data centers, including energy demand, water usage and quality, and air quality.

Following the announcement, shares of TeraWulf, listed on Nasdaq, fell 7.08% on Tuesday to close at $19.41. TeraWulf has shifted its business focus from Bitcoin mining to artificial intelligence and high-performance computing (HPC). The company currently operates the Lake Mariner campus in New York and is planning and developing another campus at Lake Hawkeye. According to TeraWulf's first-quarter financial report, its HPC leasing revenue exceeded Bitcoin mining revenue for the first time, reaching $21 million. Total revenue for the quarter was $34 million, roughly flat compared to $34.4 million in the same period last year, while digital asset mining revenue was slightly below $13 million.