Alcoa Set to Leverage Crypto's Energy Demands with Sale of Dormant Smelter

Alcoa, the largest US aluminum producer, is on the verge of selling its idle Massena East smelter in upstate New York to New York Digital Investment Group (NYDIG), a Bitcoin mining firm, as it divests dormant assets and meets the growing demand for industrial sites with readily available energy. According to CEO Bill Oplinger, the company is in advanced negotiations and expects the sale to be finalized mid-year, as reported by Bloomberg. The site, situated on the St. Lawrence River, has remained inactive since 2014 due to high operational costs and global competition. Its appeal, however, lies not in aluminum production but in its existing power infrastructure, which is ideal for bitcoin miners and data center developers looking to shorten the time it takes to secure grid access. The site's access to hydropower from the New York Power Authority is also a significant draw for companies seeking affordable, carbon-neutral energy. This sale reflects a larger trend, as seen earlier this year with Century Aluminum's sale of a Kentucky smelter to TeraWulf, which plans to develop a digital infrastructure campus for high-performance computing and AI.