Lansing Town Board introduces local law to ban data centers

The Town of Lansing officially introduced a local law at its Oct. 21 Town Board meeting that, if approved, would ban data centers. The measure sets the stage for a public hearing and final vote in November, creating new friction over the future of a former coal-powered plant on the shores of Cayuga Lake.

Zoning Changes Target Cryptography and Processing

The resolution passed in a 3-2 vote during the Oct. 21 meeting. It requests that the proposed local law be reviewed by the Lansing Planning Board and the Tompkins County Planning Department before the board takes further action.

If enacted, the local law would rewrite Lansing’s zoning code to explicitly define terms including “cryptocurrency,” “cryptocurrency data mine,” “data center,” and “general processing.” Because these specific land uses are not permitted under the town’s current zoning code, adding the definitions would effectively outlaw them.

This legislative path mirrors the approach taken by the town of Dryden in February to ban data centers. The decision in Lansing also asks the Lansing Planning Board and the Tompkins County Planning Department to review the language ahead of a scheduled public hearing on Nov. 17 at 6:31 p.m. at the Lansing Middle School auditorium, with a final vote expected on Nov. 18.

Shifting Loyalties on the Town Board

The legislative push comes amid wavering support among local officials. When the concept was first discussed in September, a majority of the Town Board welcomed the idea of restricting the facilities.

Town Board member Judy Drake reversed her stance during the Oct. 21 session, stating she would not vote in favor of the ban because the board had not heard from “all of Lansing,” after having previously supported a moratorium and then a ban during a previous meeting. On Oct. 21, she admitted she felt “very defeated” in September and argued that the company behind the primary local proposal had not been given a proper opportunity to present its project to the board.

Town board member Christine Montague also distanced herself from the measure, stating she never supported the ban. “There are a lot of other things I wanted to do on the town board and I didn’t,” Montague said during the meeting. “I don’t want to waste any more time dealing with banning data centers when we need some investment in this town.”

Conversely, Town Deputy Supervisor Joe Wetmore maintained his support for the ban, citing risks such as noise pollution, water quality degradation, and potential unfulfilled promises from developers. Town Supervisor Ruth Groff echoed these concerns, stating she was tired of fighting to preserve the town’s current quality of life.

The TeraWulf Proposal and Industrial Context

The contentious debate centers on plans first announced in August 2025 by TeraWulf, a Maryland-based company seeking to convert a former coal-powered plant into a data center. The proposal has driven local election disputes and prompted multiple legal actions.

Lansing Special Town Board Meeting – data center 9/29/26

In response to the legislative push, TeraWulf CEO Paul Prager sent an Oct. 2 letter to the Town Board warning that the company could pursue legal action if the project is blocked. Prager also published statements on the project’s website urging residents and officials to consider the facts. According to company disclosures, the blighted former coal site presents development hurdles, but a completed 300 megawatt data center could generate approximately $8.7 million in annual property taxes by its projected 2032 full buildout.

The company notes the facility would utilize a closed-loop cooling system supplied by municipal water purchased from Bolton Point, which draws from Cayuga Lake. Ahead of the November votes, TeraWulf scheduled an open house for Lansing residents on Nov. 5 at the Lansing Middle School auditorium. Meanwhile, a Planning Board meeting originally slated for Oct. 26 to discuss the ban was rescheduled for Nov. 9.