Alcoa, the largest US aluminum producer, is on the verge of selling its unused Massena East smelter in upstate New York to New York Digital Investment Group, a Bitcoin investment firm, as the company divests idle assets and meets the rising demand for industrial sites with readily available energy. According to Alcoa's CEO, Bill Oplinger, the company is engaged in advanced negotiations, with the sale expected to be finalized mid-year, as reported by Bloomberg.
The site, situated along the St. Lawrence River, has been inactive since 2014, when Alcoa shut it down due to excessive operational costs and global competition. The appeal of the site lies not in its metal production capabilities but in its existing power infrastructure. As aluminum smelters operate continuously, they are equipped with dedicated substations and transmission lines, which remain in place even after the smelter is closed.
This infrastructure can significantly reduce the time required for bitcoin miners and data center developers 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 attractive option for companies seeking affordable and sustainable energy.
This sale reflects a larger trend, as seen earlier this year when Century Aluminum sold a Kentucky smelter to TeraWulf, which plans to develop a digital infrastructure campus supporting high-performance computing and artificial intelligence.