Alcoa, the largest US aluminum producer, is on the verge of selling its unused Massena East smelter in upstate New York to New York Digital Investment Group (NYDIG), a Bitcoin investment firm, as part of its strategy to offload dormant 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 anticipates the deal will be finalized by mid-year, as reported by Bloomberg. The site, situated on the St. Lawrence River, has been inactive since 2014, when Alcoa ceased operations due to high costs and global competition.
The appeal of the site lies not in its aluminum production capabilities, but in its existing power infrastructure. Aluminum smelters are designed to operate continuously, requiring substantial amounts of electricity, which is supplied through dedicated substations and transmission lines. When these facilities close, the power infrastructure remains, providing an attractive opportunity for bitcoin miners and data center developers to quickly secure grid access.
Additionally, the Massena East site has access to hydropower from the New York Power Authority, making it an appealing option for companies seeking low-cost, carbon-free energy. This deal reflects a larger trend, as seen earlier this year when Century Aluminum sold a Kentucky smelter to TeraWulf, which plans to develop a digital infrastructure campus supporting high-performance computing and artificial intelligence.