Alcoa, the largest US aluminum producer, is on the verge of selling its dormant Massena East smelter in upstate New York to New York Digital Investment Group, a Bitcoin firm, as the company divests idle assets and meets the growing need for energy-equipped industrial locations. According to CEO Bill Oplinger, the negotiations are advanced, with an expected closure in the mid-part of the 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 the existing power infrastructure, which includes dedicated substations and transmission lines, a significant draw for bitcoin miners and data center developers seeking to expedite their 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 option for companies looking to reduce their energy costs.
This transaction reflects a larger trend, as evidenced by Century Aluminum's earlier sale of a Kentucky smelter to TeraWulf, which plans to develop a digital infrastructure campus supporting high-performance computing and AI applications.