TeraWulf Inc., a leading owner and operator of vertically integrated, next-generation digital infrastructure powered by predominantly zero-carbon energy, today announced the execution of a long-term ground lease for approximately 183 acres at the Cayuga site in Lansing, New York (the “Cayuga Ground Lease”). This transaction marks a major step forward in the Company’s expansion of high-performance computing (HPC) and AI data center hosting.
The Cayuga Ground Lease, executed with Cayuga Operating Company LLC (“Cayuga”), has a term of 80 years and includes reciprocal purchase and sale options exercisable for $100 beginning in year 50. The lease provides TeraWulf with exclusive rights to develop up to 400 MW of digital infrastructure capacity, with 138 MW of low-cost, predominantly zero-carbon power expected to be ready for service in 2026. Located on the site of a former coal-fired power plant, the Cayuga property features robust existing electrical infrastructure, an industrial-scale water intake system, and redundant fiber connectivity – critical components for supporting enterprise-scale computing workloads.
“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.”
Located in Upstate New York, where nearly 90% of the electricity generation mix is from zero carbon-sources, the Cayuga site benefits from one of the cleanest energy profiles in the country. The property’s existing substation and four transmission lines (115kV and 34.5kV) support near-term scalability, while electricity costs averaging below $0.05 per kilowatt-hour reinforce TeraWulf’s low-cost operating model. An approximately 67 MW solar installation is planned, and an 800 MWh battery energy storage system is in advanced development on parcels adjacent to the leased area.
The transaction was negotiated and approved by a special committee of the Company’s Board of Directors, composed entirely of independent directors (the “Independent Committee”) as Cayuga is owned by TeraWulf’s Chief Executive Officer. The Independent Committee was advised by independent legal counsel Reed Smith LLP and received a fairness opinion from CBRE Capital Advisors, Inc. In connection with the transaction, Cayuga’s parent company Riesling Power will receive consideration comprised of $95 million in the form of TeraWulf common stock determined on the basis of a 15-day trailing VWAP, and $3 million in cash, reinforcing long-term alignment between management and shareholders.
