TeraWulf shares slide as New York halts data center permits

The executive order mandates that the Department of Public Service develop a comprehensive environmental impact statement within the next year, specifically targeting electricity consumption, water quality, and air standards. Beyond the permitting freeze, Governor Hochul signaled an intent to introduce legislation aimed at stripping away existing sales tax exemptions for large-scale data facilities, a move that threatens the fiscal incentives currently driving sector expansion.

Despite the sell-off, CEO Paul Prager maintained that the company’s Lake Mariner and Lake Hawkeye projects remain unaffected by the new restrictions. Prager stated that the firm’s development strategy aligns with state priorities, particularly regarding on-site power generation. TeraWulf is simultaneously pivoting its business model toward artificial intelligence and high-performance computing, highlighted by a recent 20-year lease with Anthropic for a Kentucky campus expected to yield $19 billion in revenue. With the company's Q1 2026 financial report showing high-performance computing revenue overtaking digital asset mining for the first time, leadership views the current regulatory shift as a manageable hurdle in their transition toward predictable, long-term contracted income.