LANSING, N.Y. — The Town of Lansing’s Zoning Board of Appeals (ZBA) has approved an appeal from TeraWulf, allowing the controversial AI data center project to progress in the planning process. The board voted 3-2 in favor of classifying the proposed facility as a general processing center, despite significant local opposition and concerns about environmental impacts.
TeraWulf, a Maryland-based digital infrastructure company, announced its plans in August to construct the data center on the site of a former coal power plant. Local residents have raised alarms about potential increases in electricity costs and the broader environmental ramifications associated with energy-intensive data centers. However, proponents argue that the project will revitalize an outdated industrial site, boost tax revenues, and generate temporary construction jobs.
Initially, Lansing Code Enforcement Officer Scott Russell deemed the project non-compliant with local zoning laws. In response, TeraWulf filed two appeals, asserting that the data center would operate as a scientific research facility, a general processing center, or a warehouse—all permissible uses under the town’s zoning code.
The ZBA ultimately rejected the appeals for classification as a scientific research laboratory and a warehouse, with board member Susan Tabrizi emphasizing that the facility’s primary use remains infrastructure for housing servers. “Since the land use remains identical… I did not find that it fell under scientific research,” she stated.
In his comments, ZBA Chair Jack Young noted that he viewed the data center’s function as aligning closely with a general processing facility, which involves handling and disseminating large amounts of data. Following the ZBA’s decision, TeraWulf’s proposal will now move to the Town of Lansing’s planning board for further review.