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 prominent Bitcoin mining firm, as part of its strategy to offload unused assets and meet the growing demand for industrial sites with readily available energy. According to Alcoa's CEO, Bill Oplinger, the company is in advanced negotiations and anticipates the deal to be finalized by the middle of the year. The smelter, situated along the St. Lawrence River, has remained idle since 2014 due to high operational costs and intense global competition.
However, its appeal lies in its existing power infrastructure, which includes dedicated substations and transmission lines, making it an attractive site for bitcoin miners and data center developers who can save years in securing grid access. Additionally, the site has access to low-cost, carbon-free hydropower from the New York Power Authority, further enhancing its appeal. This deal is part of 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 for high-performance computing and AI applications.