Alcoa, the largest US aluminum producer, is on the verge of selling its unused Massena East smelter in upstate New York to New York Digital Investment Group (NYDIG), a Bitcoin mining firm, as part of its strategy to offload idle assets and meet the growing need for energy-ready industrial locations. According to CEO Bill Oplinger, the company is in advanced discussions and expects the sale to be finalized mid-year, as reported by Bloomberg. The site, situated along the St.
Lawrence River, has been dormant since 2014 due to high operational costs and global competition. Its appeal now lies in its existing power infrastructure, rather than aluminum production.
Since aluminum smelters operate continuously and draw significant amounts of electricity, the dedicated substations and transmission lines remain after closure, which can save bitcoin miners and data center developers years in securing grid access. Furthermore, the Massena East site has access to low-cost, carbon-free hydropower from the New York Power Authority, making it an attractive option for companies seeking affordable and sustainable energy.
This deal is part of a larger trend, as seen earlier this year with Century Aluminum's sale of a Kentucky smelter to TeraWulf, which plans to develop a digital infrastructure campus for high-performance computing and AI.