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 (NYDIG), a bitcoin mining firm, as part of its strategy to offload dormant assets and meet the growing demand for industrial sites with readily available energy infrastructure. According to CEO Bill Oplinger, the company is in advanced negotiations and expects the sale 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 global competition.
However, its appeal lies in its existing power infrastructure, which includes dedicated substations and transmission lines, making it an attractive location for bitcoin miners and data center developers seeking to reduce the time and complexity associated with securing grid access. Additionally, the site has access to hydropower from the New York Power Authority, offering a low-cost and carbon-free energy source. This deal reflects a larger trend, as seen in Century Aluminum's sale of a Kentucky smelter to TeraWulf, which plans to develop a digital infrastructure campus supporting high-performance computing and AI applications.