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 firm, as it sheds dormant assets and meets the growing need for industrial sites with readily available energy. According to CEO Bill Oplinger, the deal is in its advanced stages and is expected to be finalized by the middle of the year. The site, situated along the St. Lawrence River, has been inactive since 2014 due to high operational costs and global competition.
Its appeal to NYDIG lies not in its aluminum production capabilities but in its existing power infrastructure, including dedicated substations and transmission lines. This setup can significantly reduce the time required 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 environmental footprint. This transaction reflects a larger trend, as seen in Century Aluminum's sale of a Kentucky smelter to TeraWulf earlier this year, which plans to develop a digital infrastructure campus supporting high-performance computing and artificial intelligence.