TeraWulf CEO Cheered New York’s Data Center Freeze, His Stock Fell 7%.

TeraWulf Chief Executive Paul Prager welcomed New York’s new data center moratorium as a win for the company. Investors disagreed, sending WULF shares down about 7% the same day.

The divide followed Governor Kathy Hochul’s executive order, which paused permits for large new data centers.

Why New York Paused Data Center Development

Hochul signed the order on July 14, creating the first statewide freeze on new hyperscale data centers. The state halted discretionary permits not already deemed complete. 

During the pause, regulators will prepare a Generic Environmental Impact Statement (GEIS) to assess impacts on energy demand, water use, and air quality.

The order targets the industry’s heavy power and water needs. Hochul also plans to seek the repeal of sales tax exemptions for large data centers across the state.

“New York has always been at the forefront of innovation and change, but we’ve also always guaranteed that New Yorkers benefit. As data center development threatens to hike up utility bills, deplete our natural resources, and create uncertainty for New Yorkers, it’s my responsibility to take action and lead,” Governor Hochul stated.

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Why TeraWulf’s Stock and Its CEO Diverged

TeraWulf runs the Lake Mariner campus in New York and is developing a second site at Lake Hawkeye, per its sites page. The company is shifting from Bitcoin (BTC) mining toward artificial intelligence and high-performance computing (HPC), a pivot shared by other miners.

Prager argued that the order rewards permitted, power-secured projects over speculative ones. He noted that Lake Mariner is operational, and its Fluidstack and Google expansions are fully permitted.

“Lake Hawkeye is a multi-year development, and we’re also evaluating on-site power which aligns directly with the Governor’s priorities for new generation. A win-win for New York and WULF,” he said.

Despite that framing, WULF shares closed down 7.08% at $19.41 on July 14. 

For now, Prager and investors read the same order differently. The full impact on TeraWulf’s New York pipeline will become clearer as the review progresses.

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