Alcoa, the largest aluminum producer in the US, is on the verge of selling its inactive Massena East smelter in upstate New York to New York Digital Investment Group (NYDIG), a Bitcoin mining firm, as part of its efforts to divest dormant assets and capitalize on the demand for industrial sites with readily available energy. According to Alcoa's 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 remained idle since 2014 when Alcoa ceased operations due to high operational costs and intense global competition. The site's appeal lies not in its aluminum 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 significantly reduces the time required 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 ideal location for companies seeking to minimize their environmental footprint. This deal is part of a larger trend, as evidenced by Century Aluminum's recent sale of a Kentucky smelter to TeraWulf, which plans to develop a digital infrastructure campus supporting high-performance computing and artificial intelligence.