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 firm, as part of its strategy to offload dormant assets and capitalize on the demand for energy-ready sites. CEO Bill Oplinger confirmed that advanced negotiations are underway, with the deal expected to be finalized mid-year, according to Bloomberg.
The smelter, situated along the St. Lawrence River, has been inactive since 2014 due to high operational costs and global competition.
However, its appeal lies in its existing power infrastructure, which includes dedicated substations and transmission lines, making it an attractive site for bitcoin miners and data center developers seeking to reduce the time required to secure grid access. The site's access to hydropower from the New York Power Authority is also a significant draw for companies seeking low-cost, carbon-free energy. This deal is part of a larger trend, as seen in Century Aluminum's sale of a Kentucky smelter to TeraWulf earlier this year, which plans to develop a digital infrastructure campus supporting high-performance computing and AI.