Alcoa, the largest aluminum producer in the US, 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 sheds dormant assets and meets 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 by mid-year, as reported by Bloomberg. The site, situated along the St. Lawrence River, has remained idle since 2014 when Alcoa ceased operations due to high operational costs and intense global competition.
The appeal of the site lies not in its metal production capabilities but in its existing power infrastructure. Aluminum smelters operate continuously, drawing significant amounts of electricity through dedicated substations and transmission lines, which remain in place even after the smelter is closed.
This existing infrastructure can save bitcoin miners and data center developers years in securing 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 transaction reflects a larger trend, as seen earlier this year when Century Aluminum sold a Kentucky smelter to TeraWulf, which plans to develop a digital infrastructure campus supporting high-performance computing and artificial intelligence.