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 dormant assets and meets the growing demand for industrial sites with readily available energy. According to Alcoa's CEO, Bill Oplinger, the company is in advanced discussions and anticipates the sale to be finalized by mid-year, as reported by Bloomberg. The site, situated along the St.
Lawrence River, has remained inactive since 2014 when Alcoa ceased operations due to high operational costs and global competition. The appeal of the site lies not in its metal 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 closed.
This existing infrastructure can save bitcoin miners and data center developers years in securing 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-free energy. This deal is part of a larger trend, as seen earlier this year with Century Aluminum's sale of a Kentucky smelter to TeraWulf, which plans to develop a digital infrastructure campus supporting high-performance computing and AI.