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 it divests idle assets and meets the growing demand for industrial sites with existing energy capabilities. 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 inactive since 2014 due to high operational costs and global competition. However, its appeal lies in its existing power infrastructure, rather than the aluminum production itself. The site's dedicated substations and transmission lines, initially designed to support continuous smelter operations, can significantly reduce the time required for bitcoin miners and data center developers to establish grid access.
Furthermore, the site's access to hydropower from the New York Power Authority provides an attractive source of low-cost, carbon-free energy. This sale reflects a broader trend, as evidenced by Century Aluminum's earlier sale of a Kentucky smelter to TeraWulf, which plans to develop a digital infrastructure campus for high-performance computing and AI applications.