TLDR
- WULF stock drops 7% after New York pauses new data center permits.
- TeraWulf says Lake Mariner and Lake Hawkeye plans remain unchanged.
- New York begins environmental review for future data center projects.
- TeraWulf expands AI business with a $19B Anthropic lease agreement.
- HPC revenue tops bitcoin mining revenue for TeraWulf in Q1 2026.
TeraWulf Inc. (NASDAQ: WULF) shares dropped 7.08% to close at $19.41 after New York announced new restrictions for large data centers. The decline followed Governor Kathy Hochul’s executive order pausing new environmental permits for qualifying projects across the state.The stock recovered slightly in pre-market trading and rose 1.18% to $19.64.
New York introduces temporary data center permitting pause
Governor Kathy Hochul signed an executive order that pauses new environmental permits for certain large-scale data centers for one year. Meanwhile, state agencies will prepare a Generic Environmental Impact Statement for future developments. The review will establish environmental standards before new permits resume.
The Department of Public Service will lead the review during the temporary moratorium. Officials will evaluate electricity demand, water consumption, water quality, and air quality. The state plans to complete the framework before lifting the temporary restriction.
Hochul also announced support for legislation removing sales tax exemptions for large data centers across New York.The state aims to create consistent environmental requirements for future projects. The announcement immediately pressured TeraWulf shares during Tuesday’s trading session.
Existing projects continue while AI expansion advances
TeraWulf stated that the executive order does not affect its current operations or ongoing development schedule. The company continues operating its Lake Mariner campus in New York without regulatory changes. development planning for the Lake Hawkeye project continues under existing local review procedures.
The company also confirmed that expansion work supporting Fluidstack and Google at Lake Mariner remains fully permitted. Management continues evaluating on-site power generation for the Lake Hawkeye campus. That approach aligns with New York’s focus on supporting additional electricity generation for future facilities.
Besides maintaining its New York projects, TeraWulf continues expanding its artificial intelligence and high-performance computing business. Last week, the company signed a 20-year lease agreement with Anthropic for its Justified Data campus in Hawesville, Kentucky. The agreement is expected to generate approximately $19 billion in contracted revenue during its full term.
Revenue shifts toward high-performance computing
TeraWulf continues reducing its dependence on bitcoin mining through long-term computing infrastructure agreements. The company is preparing financing of about $3.5 billion through leveraged loans and high-yield bonds. The funding will support construction of its Kentucky artificial intelligence campus.
The Kentucky facility is expected to provide about 401 megawatts of critical computing capacity after completion. Initial operations are scheduled for the second half of 2027. Full deployment is currently planned for early 2028.
The company’s first-quarter results highlighted its changing business model. High-performance computing lease revenue reached $21 million and exceeded digital asset mining revenue below $13 million. Total quarterly revenue reached $34 million, compared with $34.4 million during the same period last year, while the company continued shifting toward contracted infrastructure revenue.
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