Alcoa, the largest US aluminum producer, is on the verge of selling its dormant Massena East smelter in upstate New York to New York Digital Investment Group (NYDIG), a Bitcoin firm, as part of its strategy to divest idle assets and cater to the growing demand for industrial sites with readily available energy infrastructure. According to CEO Bill Oplinger, the company is in advanced negotiations and anticipates the deal to be finalized by mid-year, as reported by Bloomberg. The site, situated along the St. Lawrence River, has remained inactive since 2014 due to high operational costs and fierce global competition.
However, its appeal lies not in aluminum production but in its existing power infrastructure, which includes dedicated substations and transmission lines capable of drawing substantial amounts of electricity around the clock. This setup is particularly attractive to bitcoin miners and data center developers, as it significantly reduces the time required to secure access to the grid.
Additionally, the Massena East site has access to low-cost, carbon-free hydropower from the New York Power Authority, making it an ideal location for firms seeking renewable energy sources. This potential sale reflects a larger trend, as seen earlier this year with Century Aluminum's sale of a Kentucky smelter to TeraWulf, which plans to develop a digital infrastructure campus for high-performance computing and AI applications.