Alcoa, the largest US aluminum producer, is on the verge of selling its unused Massena East smelter in upstate New York to New York Digital Investment Group, a bitcoin company, as it sheds dormant assets and meets the growing need for sites with existing energy infrastructure. According to CEO Bill Oplinger, the company is in advanced discussions and anticipates the sale to be finalized 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 aluminum production, but in its existing power infrastructure. As aluminum smelters operate continuously, they require substantial amounts of electricity, which is supplied through dedicated substations and transmission lines.
When these facilities close, the infrastructure remains, offering a significant advantage for bitcoin miners and data center developers by reducing the time needed to secure grid access. Additionally, the Massena East site has access to low-cost, carbon-free hydropower from the New York Power Authority, making it an attractive location for companies seeking affordable energy. This sale 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 for high-performance computing and AI applications.