Alcoa, the largest aluminum producer in the US, is on the verge of selling its idle Massena East smelter in upstate New York to New York Digital Investment Group (NYDIG), a leading Bitcoin mining company, as it seeks to divest dormant assets and tap into the growing demand for industrial sites with readily available energy infrastructure. According to Alcoa's CEO, Bill Oplinger, the company is in advanced negotiations and expects the sale to be finalized by the middle of this year. The Massena East site, located on the St.
Lawrence River, has been inactive since 2014 due to high operating costs and intense global competition. However, its appeal lies not in its aluminum production capabilities, but in its existing power infrastructure, which includes dedicated substations and transmission lines.
This infrastructure is highly sought after by Bitcoin miners and data center developers, as it can significantly reduce the time and complexity associated with securing access to the power grid. Furthermore, the site has access to hydropower from the New York Power Authority, making it an attractive option for companies seeking low-cost, carbon-free energy. This deal is part of a larger trend, as evidenced by Century Aluminum's recent sale of a Kentucky smelter to TeraWulf, which plans to develop a digital infrastructure campus supporting high-performance computing and artificial intelligence applications.