Alcoa, the largest aluminum producer in the US, is on the verge of selling its dormant Massena East smelter in upstate New York to New York Digital Investment Group (NYDIG), a firm specializing in Bitcoin mining, as it sheds underutilized assets and leverages the demand for energy-intensive industrial sites. According to CEO Bill Oplinger, the company is engaged in advanced negotiations and anticipates the deal's closure by mid-year, as reported by Bloomberg. The site, situated along the St.
Lawrence River, has remained inactive since 2014 when Alcoa ceased operations due to high operational costs and fierce global competition. The appeal of the site lies not in its aluminum production capabilities but in its existing energy infrastructure. Aluminum smelters require continuous operation, drawing substantial amounts of electricity from dedicated substations and transmission lines, which remain intact even after the smelter is closed. This infrastructure can significantly reduce the time required for bitcoin miners and data center developers to secure access to the grid.
Additionally, the Massena East site has access to hydropower from the New York Power Authority, making it an attractive option for companies seeking low-cost, carbon-neutral energy. This deal is part of a larger trend, as evidenced by Century Aluminum's sale of a Kentucky smelter to TeraWulf earlier this year, which plans to establish a digital infrastructure campus supporting high-performance computing and artificial intelligence.