Alcoa, the largest aluminum producer in the US, 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 part of its strategy to divest idle assets and meet the rising demand for industrial sites with readily available energy. According to Alcoa's CEO, Bill Oplinger, the negotiations are at an advanced stage, with the transaction expected to be finalized by the middle of the year, as reported by Bloomberg. The site, situated along the St. Lawrence River, has remained inactive since 2014, when Alcoa ceased operations due to high operational costs and intense global competition.
The appeal of this 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 infrastructure is highly attractive to Bitcoin miners and data center developers, as it significantly reduces the time required to secure access to the power grid. Additionally, the Massena East site has access to hydropower from the New York Power Authority, making it an appealing option for companies seeking low-cost, carbon-neutral energy.
This deal reflects a larger trend, as seen earlier in the year when Century Aluminum sold a Kentucky smelter to TeraWulf, which plans to develop a digital infrastructure campus supporting high-performance computing and artificial intelligence.