Alcoa, the largest aluminum producer in the U.S., is on the verge of selling its unused Massena East smelter in upstate New York to New York Digital Investment Group (NYDIG), a bitcoin mining firm, as the company sheds dormant assets and meets the growing need for energy-equipped industrial locations. According to CEO Bill Oplinger, the company is in advanced negotiations and anticipates the deal to be finalized mid-year, as reported by Bloomberg.
The site, situated along the St. Lawrence River, has been inactive since 2014 when Alcoa ceased operations due to high operational costs and global competition. The appeal of the site lies not in its metal production capabilities but in its existing power infrastructure.
Aluminum smelters are designed to operate continuously, consuming large amounts of electricity through dedicated substations and transmission lines, which remain in place even after the smelter is closed. This can significantly reduce the time it takes for bitcoin miners and data center developers to secure access to the grid. Additionally, the Massena East site has access to hydropower from the New York Power Authority, making it an attractive option for companies seeking low-cost, carbon-free energy.
This deal is part of a larger trend, as seen earlier this year when Century Aluminum sold a Kentucky smelter to TeraWulf, which plans to build a digital infrastructure campus supporting high-performance computing and AI.