Alcoa, the largest US aluminum producer, is on the verge of offloading its unused Massena East smelter in upstate New York to New York Digital Investment Group (NYDIG), a move that underscores the company's strategy to divest idle assets and meet the rising demand for energy-equipped industrial locations. According to CEO Bill Oplinger, the negotiations are at an advanced stage, with the transaction expected to be finalized mid-year, as reported by Bloomberg. The site, situated along the St.
Lawrence River, has been dormant since 2014, when Alcoa ceased operations due to exorbitant costs and global competition. However, its appeal lies not in aluminum production, but in its existing power infrastructure.
As aluminum smelters require continuous operation and substantial electricity supply, they often have dedicated substations and transmission lines, which remain intact even after closure. This infrastructure can significantly reduce the time it takes for bitcoin miners and data center developers to secure access to the grid. Moreover, the Massena East site has access to hydropower from the New York Power Authority, making it an attractive option for companies seeking affordable, carbon-neutral energy.
This deal is part of a larger trend, as evident in Century Aluminum's sale of a Kentucky smelter to TeraWulf earlier this year, which plans to establish a digital infrastructure campus supporting high-performance computing and AI.