The New York Department of Environmental Conservation approved a permit for the Cayuga Operating Company, which is owned by the chief executive officer of data center developer TeraWulf, to draw approximately 1 million gallons of water from Cayuga Lake per day, on April 13.
From April 13 to April 30, 2031, Cayuga Operating Company can withdraw up to 1,008,000 gallons per day from Cayuga Lake for “for system maintenance, sump pumping, and dust control,” according to the permit.
In comparison, the Bolton Point water system, which provides water to more than 30,000 people — including five municipalities in Tompkins County — withdraws 2.4 million gallons of water from the lake each day.
The Tompkins County legislature previously approved a resolution in January urging the DEC to reject Cayuga Operating Company’s permit request. The resolution specifically regarded the intended use of the water, which was “unspecified” in its original 2021 permit request, and urged TeraWulf to submit a new permit request altogether.
TeraWulf announced plans to build a data center at the old Milliken Station power plant site in August 2025 — land which Cayuga Operating Company owns. These plans for the center raised energy and environmental concerns from local environmental groups Cayuga Lake Environmental Action Now and FLX Strong.
The groups sued the developer in January to block the data center.
However, John Dennis, co-founder of CLEAN!, told The Sun that he is not that worried about the water withdrawal approval since it would be illegal for Cayuga Operating Company to transfer any water permits to TeraWulf or other entities — any other party would need to begin the permitting process again, according to the DEC program policy for transfers of permits.
Instead, even though TeraWulf cannot access the permit, it is “not surprising for corporations to ask for more bells and whistles and more options” while developing, Dennis said.
“It’s nice to have a water withdrawal permit in the back of your pocket,” Dennis added.
Tompkins County Legislator Deborah Dawson (Seventh District) found the DEC’s decision “absolutely bewildering,” she told The Sun.
“My reaction is, I am disappointed to the extent you can be disappointed by something you’re not surprised by,” Dawson added.
“Protecting water quality in Cayuga Lake is a top priority for New York State and DEC,” a DEC spokesperson wrote to The Sun. “The new permit will drastically reduce the amount of water that can be withdrawn from Cayuga Lake from 245 million gallons a day to 1 million gallons a day.”
However, the approximately 99.6% reduction is the amount Milliken was able to withdraw from the lake, not what Cayuga Operating Company was currently withdrawing, Dennis said.
Dennis and CLEAN! think some of the calculations Cayuga Operating Company submitted to the DEC are “theoretical,” because they reflect the amount the company would be pulling from the lake if its service pump, which withdraws 700 gallons of water per minute, was turned on every minute of the year.
Dawson added that DEC’s approval was, in part, based on “overarching policy decisions made in Albany that heavily influence the decisions DEC makes, and sometimes that influence is greater than DEC’s concern for the environment.”
John Marabella, the Cayuga Operating Company’s environmental director, did not respond to a request for comment.
The Town of Lansing is set to review TeraWulf’s plans for the site on April 27.
Atticus Johnson is a member of the Class of 2028 in the College of Arts and Sciences. He is a senior writer for the News department and can be reached at ajohnson@cornellsun.com.
