Alcoa, the largest aluminum producer in the United States, is on the verge of selling its unused Massena East smelter in upstate New York to New York Digital Investment Group (NYDIG), a firm involved in Bitcoin mining, as it seeks to divest dormant assets and meet the growing demand for industrial sites with readily available energy. According to Alcoa's CEO, Bill Oplinger, the negotiations are at an advanced stage, with the deal expected to be finalized mid-year, as reported by Bloomberg. The smelter, situated along the St.
Lawrence River, has remained inactive since 2014 due to high operational costs and intense global competition. The appeal of the site lies not in its aluminum production capabilities but in its existing power infrastructure, which includes dedicated substations and transmission lines designed to support continuous operation. This setup can significantly reduce the time it takes for bitcoin miners and data center developers to secure access to the grid. Furthermore, the site benefits from access to low-cost, carbon-free hydropower from the New York Power Authority, making it an attractive location for companies seeking to minimize their energy costs and carbon footprint.
This deal is part of a larger trend, as evidenced by Century Aluminum's sale of a Kentucky smelter to TeraWulf earlier this year, which plans to develop a digital infrastructure campus to support high-performance computing and artificial intelligence applications.