Alcoa, the largest US aluminum producer, 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 offload unused assets and capitalize on the growing demand for industrial sites with readily available energy. According to CEO Bill Oplinger, the company is in advanced negotiations and expects the sale to be finalized by mid-year, as reported by Bloomberg.
The site, situated along the St. Lawrence River, has remained idle since 2014 due to high operational costs and intense global competition.
However, its appeal lies not in its aluminum production capabilities, but in its existing power infrastructure. Aluminum smelters are designed to operate continuously, drawing significant amounts of electricity through dedicated substations and transmission lines, which remain intact even after the smelter is shut down. This infrastructure can save bitcoin miners and data center developers years of time and effort in securing access to the grid. 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 to reduce their environmental footprint.
This sale is part of a larger trend, as seen in Century Aluminum's recent sale of a Kentucky smelter to TeraWulf, which plans to develop a digital infrastructure campus supporting high-performance computing and AI applications.