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 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 idle since 2014 due to high operational costs and global competition. Its appeal to NYDIG lies not in aluminum production but in the site's existing power infrastructure, which includes dedicated substations and transmission lines.
This setup can significantly reduce the time required for bitcoin miners and data center developers to secure access to the grid. Furthermore, the site's access to hydropower from the New York Power Authority offers a low-cost and carbon-free energy source, making it an attractive location. This deal reflects a larger trend, as seen in Century Aluminum's sale of a Kentucky smelter to TeraWulf earlier this year, which plans to develop a digital infrastructure campus for high-performance computing and AI applications.