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 firm, as it seeks to divest dormant assets and cater to the growing demand for industrial sites with existing energy infrastructure. According to Alcoa's CEO, Bill Oplinger, the company is in advanced negotiations and expects the sale to be finalized mid-year, as reported by Bloomberg. The site, which has been idle since 2014 due to high operational costs and global competition, boasts a strategic location along the St. Lawrence River.
Its appeal, however, lies not in its aluminum production capabilities but in its existing power infrastructure, including dedicated substations and transmission lines. This setup is particularly attractive to Bitcoin miners and data center developers, as it significantly reduces the time required to secure access to the grid.
Furthermore, the site's access to hydropower from the New York Power Authority makes it an appealing option for companies seeking affordable, carbon-neutral energy. This sale reflects a larger trend, evident in Century Aluminum's recent sale of a Kentucky smelter to TeraWulf, which plans to develop a digital infrastructure campus for high-performance computing and artificial intelligence.