Alcoa, the largest aluminum producer in the US, is on the verge of selling its unused Massena East smelter in upstate New York to New York Digital Investment Group (NYDIG), a Bitcoin mining firm, as part of its strategy to divest idle assets and cater to the rising demand for industrial sites with readily available energy. According to CEO Bill Oplinger, the company is in advanced negotiations and expects the sale to be finalized by mid-year, as reported by Bloomberg. The smelter, situated along the St. Lawrence River, has been inactive since 2014 due to high operational costs and global competition.
The site's appeal stems from its existing power infrastructure, which includes dedicated substations and transmission lines, rather than its aluminum production capabilities. This infrastructure can significantly reduce the time required for bitcoin miners and data center developers to secure access to the grid. Additionally, the site has access to low-cost, carbon-free hydropower from the New York Power Authority, making it an attractive option for companies seeking to minimize their environmental footprint. This deal is part of a larger trend, as evidenced by Century Aluminum's recent sale of a Kentucky smelter to TeraWulf, which plans to establish a digital infrastructure campus supporting high-performance computing and AI applications.