Alcoa, the leading aluminum producer in the U.S., is on the verge of selling its unused Massena East smelter in upstate New York to New York Digital Investment Group (NYDIG), a firm involved in Bitcoin mining. This move is part of Alcoa's efforts to divest dormant assets and capitalize on the growing demand for industrial sites with readily available energy infrastructure.
According to Alcoa's CEO, Bill Oplinger, the negotiations are at an advanced stage, with expectations that the sale will be finalized by the middle of the year. The smelter, located on the St.
Lawrence River, has been out of operation since 2014 due to high operational costs and intense global competition. However, its appeal to NYDIG lies not in its aluminum production capabilities but in its existing power infrastructure, designed to operate continuously and draw significant amounts of electricity.
This setup can significantly reduce the time and complexity associated with securing access to the power grid for bitcoin mining and data center operations. Furthermore, the site benefits from access to low-cost, carbon-free hydropower courtesy of the New York Power Authority, making it an attractive proposition for companies seeking sustainable energy solutions. This transaction is indicative of a larger trend, as evidenced by Century Aluminum's recent sale of a Kentucky smelter to TeraWulf, which intends to develop a digital infrastructure campus focused on high-performance computing and artificial intelligence.