Alcoa, the largest aluminum producer in the US, is on the verge of selling its dormant 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 tap into the growing demand for industrial sites with readily available energy infrastructure. 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 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 its metal production capabilities but in its existing power infrastructure, which includes dedicated substations and transmission lines. This infrastructure is highly attractive to bitcoin miners and data center developers, as it can significantly reduce the time required to secure access to the grid. Furthermore, the site has access to low-cost, carbon-free hydropower from the New York Power Authority, making it an ideal location for companies 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.