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 mining firm, as it sheds underutilized assets and leverages the demand for energy-ready industrial locations. According to CEO Bill Oplinger, the company is in advanced negotiations and anticipates the deal 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, which includes dedicated substations and transmission lines.
For bitcoin miners and data center developers, acquiring such a site can significantly reduce the time required to secure grid access. Furthermore, the Massena East site has access to low-cost, carbon-free hydropower from the New York Power Authority, making it an attractive location for firms seeking sustainable energy solutions. This deal is part of a larger trend, as earlier this year, Century Aluminum sold a Kentucky smelter to TeraWulf, which plans to develop a digital infrastructure campus supporting high-performance computing and AI applications.