Alcoa, the largest aluminum producer in the United States, 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 the company sheds dormant assets and meets the growing demand for industrial sites with readily available energy. According to CEO Bill Oplinger, the negotiations are at an advanced stage, with the deal expected to be finalized mid-year, as reported by Bloomberg.
The site, situated along the St. Lawrence River, has remained idle since 2014 due to high operational costs and global competition. However, its appeal now lies in its existing power infrastructure, rather than aluminum production. As aluminum smelters operate continuously, they require substantial amounts of electricity, which is facilitated by dedicated substations and transmission lines.
When these facilities close, the infrastructure remains intact. For Bitcoin miners and data center developers, acquiring such sites can significantly reduce the time it takes to secure access to the power grid. Additionally, the Massena East 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 deal is part of a larger trend, as seen earlier this year when Century Aluminum sold a Kentucky smelter to TeraWulf, which plans to establish a digital infrastructure campus for high-performance computing and artificial intelligence.