New York Governor Kathy Hochul signed an executive order on July 14 creating the first statewide freeze on new hyperscale data centers, halting discretionary permits not already deemed complete. TeraWulf CEO Paul Prager welcomed the move as a win for his company, even as TeraWulf stock (WULF) fell about 7% on the same day.
What the order does
The moratorium pauses approvals for large-scale data centers while regulators prepare a Generic Environmental Impact Statement (GEIS) to assess energy demand, water use, and air quality. Hochul also plans to seek repeal of sales tax exemptions for big data centers across the state. She argued that unchecked development threatens to hike utility bills, deplete natural resources, and create uncertainty.
Why TeraWulf isn't worried
TeraWulf runs the Lake Mariner campus in New York and is developing a second site at Lake Hawkeye. The company is shifting from Bitcoin mining toward artificial intelligence and high-performance computing (HPC). Prager said the order rewards permitted, power-secured projects over speculative ones. Lake Mariner is operational, and its Fluidstack and Google expansions are fully permitted. Lake Hawkeye is a multi-year development, and TeraWulf is evaluating on-site power.
Prager described the situation as a 'win-win for New York and WULF.'
Stock reaction
WULF shares closed down 7.08% at $19.41 on July 14. The timing isn't great — the stock had been riding a wave of interest in TeraWulf's AI pivot. But the CEO's confidence suggests the company sees the moratorium as a competitive moat, not a threat.
The GEIS process will take months, and the sales tax repeal would require legislative approval. For TeraWulf, the immediate focus is on executing its Lake Mariner expansions and locking down power for Lake Hawkeye. The moratorium doesn't touch those projects — and that's exactly why Prager is smiling.
