Alcoa, the largest U.S. 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 firm, as part of its strategy to divest dormant assets and cater to the growing demand for industrial sites with readily available energy infrastructure.
According to CEO Bill Oplinger, the company is in advanced negotiations and anticipates the deal to be finalized by mid-year, as reported by Bloomberg. The site, situated along the St.
Lawrence River, has remained inactive 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 setup is highly attractive to bitcoin miners and data center developers, as it significantly reduces the time required to secure access to the power grid. Furthermore, the site's access to low-cost, carbon-free hydropower from the New York Power Authority is an added draw for companies seeking sustainable energy solutions.
This sale reflects a larger trend, as seen in Century Aluminum's recent sale of a Kentucky smelter to TeraWulf, which plans to develop a digital infrastructure campus supporting high-performance computing and AI applications.