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 firm, as part of its strategy to offload unused assets and capitalize on the demand for industrial sites with existing energy capabilities. According to CEO Bill Oplinger, the company is in advanced negotiations, with the deal expected 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.
Its appeal, however, lies not in aluminum production but in its existing power infrastructure, including dedicated substations and transmission lines, which can significantly reduce the time needed for bitcoin miners and data center developers to secure grid access. Additionally, the site has access to low-cost, carbon-free hydropower from the New York Power Authority, making it an attractive proposition for companies seeking affordable and sustainable energy solutions.
This transaction reflects a larger 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.