Alcoa, the largest aluminum producer in the US, is on the verge of selling its inactive Massena East smelter in upstate New York to New York Digital Investment Group (NYDIG), a Bitcoin mining firm, as it sheds dormant assets and leverages the demand for industrial sites with readily available energy. According to CEO Bill Oplinger, the company is in advanced negotiations and anticipates the deal will be finalized mid-year, as reported by Bloomberg. The site, situated along the St. Lawrence River, has remained idle since 2014 when Alcoa ceased operations due to high operational costs and global competition.
The site's appeal stems from its existing power infrastructure, rather than its aluminum production capabilities. As aluminum smelters operate continuously, they are equipped with dedicated substations and transmission lines, which remain intact even after closure. This existing infrastructure can significantly reduce the time required for bitcoin miners and data center developers to secure access to the grid.
Furthermore, 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 deal 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 AI.