Alcoa, the largest U.S. aluminum producer, 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 company, as part of its efforts to divest dormant assets and capitalize on the growing demand for industrial sites with existing energy infrastructure.
According to CEO Bill Oplinger, the company is in advanced negotiations with the expectation of closing the deal mid-year, as reported by Bloomberg. The smelter, situated along the St. Lawrence River, has remained 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 substantial power infrastructure, which includes dedicated substations and transmission lines, ideal for continuous operation. This existing infrastructure can significantly reduce the time required for Bitcoin miners and data center developers to secure grid access. Additionally, the site benefits from access to low-cost, carbon-free hydropower from the New York Power Authority, making it an attractive location for companies seeking to minimize their environmental footprint. This transaction reflects a broader trend, as seen earlier in the year when Century Aluminum sold a Kentucky smelter to TeraWulf, which plans to develop a digital infrastructure campus for high-performance computing and artificial intelligence.