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 strategy to offload unused assets and meet the growing demand for industrial sites with readily available energy. According to Alcoa's CEO, Bill Oplinger, the company is engaged in advanced negotiations and expects the transaction to be finalized by the middle of the year.
The site, situated along the St. Lawrence River, has remained idle since 2014, when Alcoa ceased operations due to high costs and intense global competition. The appeal of the site lies not in its aluminum production capabilities, but rather in its existing power infrastructure. As aluminum smelters require continuous operation and substantial amounts of electricity, they are often equipped with dedicated substations and transmission lines.
When these facilities shut down, the underlying infrastructure remains in place. This can significantly reduce the time it takes for bitcoin miners and data center developers to secure access to the grid.
Additionally, the Massena East site has access to hydropower from the New York Power Authority, making it an attractive option for companies seeking low-cost, carbon-neutral energy. This deal is part of a larger trend, as seen in Century Aluminum's recent sale of a Kentucky smelter to TeraWulf, which plans to establish a digital infrastructure campus supporting high-performance computing and artificial intelligence.