Alcoa, the largest US aluminum producer, is on the verge of selling its idle Massena East smelter in upstate New York to New York Digital Investment Group (NYDIG), a Bitcoin mining company, as part of its strategy to offload unused assets and meet the rising 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 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.
However, its appeal lies not in aluminum production, but in its existing power infrastructure, which includes dedicated substations and transmission lines capable of drawing large amounts of electricity around the clock. This infrastructure can significantly reduce the time it takes for bitcoin miners and data center developers to secure grid access.
Furthermore, the site's access to low-cost, carbon-free hydropower from the New York Power Authority makes it an attractive location for firms seeking to minimize their environmental footprint. 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 supporting high-performance computing and AI applications.