Alcoa, the largest US aluminum producer, 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 part of its strategy to offload unused assets and capitalize on the growing demand for industrial sites with readily available energy. According to CEO Bill Oplinger, the company is in advanced negotiations and anticipates the deal to be finalized mid-year, as reported by Bloomberg. The site, situated along the St. Lawrence River, has remained idle since 2014 due to high operational costs and global competition.
However, its appeal lies not in aluminum production, but in its existing power infrastructure, which includes dedicated substations and transmission lines. This infrastructure is highly attractive to bitcoin miners and data center developers, as it significantly reduces the time required to secure access to the grid. Furthermore, the 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 is part of 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 supporting high-performance computing and AI.