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 Bitcoin mining firm, as part of its strategy to offload unused assets and meet the growing demand for industrial sites with readily available energy. According to CEO Bill Oplinger, the company is in advanced negotiations and expects the sale to be finalized by mid-year, as reported by Bloomberg.
The smelter, situated along the St. Lawrence River, has been out of operation 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.
This can significantly reduce the time it takes for bitcoin miners and data center developers to secure access to the grid. Moreover, the site has access to low-cost, carbon-free hydropower from the New York Power Authority, making it an attractive location for companies seeking to minimize their environmental footprint. This potential sale reflects a larger trend, as seen in Century Aluminum's recent sale of a Kentucky smelter to TeraWulf, which plans to build a digital infrastructure campus supporting high-performance computing and AI.