TeraWulf has executed an 80-year ground lease for approximately 183 acres at the former coal-fired Cayuga power plant site in Lansing, New York. The lease grants TeraWulf exclusive rights to develop up to 400 megawatts (MW) of digital infrastructure capacity, with 138 MW of low-cost, predominantly zero-carbon power expected to be available for service in 2026.
TeraWulf reports that the Cayuga property offers existing high-capacity electrical infrastructure, an industrial-scale water intake system, and redundant fiber connectivity, making it suitable for enterprise-scale, high-performance computing (HPC) and artificial intelligence (AI) data center hosting. The site’s current substation and four transmission lines (115 kilovolt and 34.5 kilovolt) are positioned to support near-term scalability. TeraWulf notes electricity costs at the site average below $0.05 per kilowatt-hour, supporting its low-cost operations. Plans for a 67 MW solar installation and an 800 megawatt-hour battery energy storage system adjacent to the leased area have been announced.
According to TeraWulf, the site’s location in upstate New York draws from a region where nearly 90 percent of the electricity generation mix comes from zero-carbon sources, contributing to one of the cleanest energy profiles in the US for data center operations.
The lease, signed with Cayuga Operating Company, includes reciprocal purchase and sale options exercisable for $100 starting in year fifty. As part of the transaction, Cayuga’s parent company Riesling Power will receive $95 million in TeraWulf common stock and $3 million in cash, determined by a 15-day trailing volume-weighted average price, as consideration. The transaction was approved by a special committee of independent directors and advised by Reed Smith and CBRE Capital Advisors.
“Our lease at Cayuga highlights TeraWulf’s strategic advantage—access to large-scale, sustainable infrastructure in attractive power markets with predominantly zero-carbon energy and robust fiber connectivity to key hubs like New York City,” said Kerri Langlais, Chief Strategy Officer of TeraWulf. “With 138 MW expected to come online in the second half of 2026 and scalable capacity up to 400 MW, Cayuga further reinforces our position as a destination of choice for enterprise and hyperscale customers seeking low-cost, next-generation compute infrastructure.”
TeraWulf develops, owns, and operates data center infrastructure in the US designed for high-performance computing hosting and bitcoin mining, with ongoing expansion to serve both internal and external HPC workloads.
Source: TeraWulf
