Alcoa, the largest aluminum producer in the United States, is on the verge of selling its dormant Massena East smelter in upstate New York to New York Digital Investment Group (NYDIG), a firm involved in Bitcoin mining, as part of its strategy to offload unused assets and meet the growing demand for industrial sites with readily available energy. According to Alcoa's CEO, Bill Oplinger, the negotiations are at an advanced stage, with the deal expected to be finalized by the middle of the 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 intense global competition.
The appeal of this site lies not in its aluminum production capabilities but in its existing power infrastructure. Since aluminum smelters operate continuously, they are equipped with dedicated substations and transmission lines, which remain in place even after the smelter is shut down. This existing infrastructure can significantly reduce the time it takes for bitcoin miners and data center developers to secure 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 transaction is part of a larger trend, as seen earlier in the year when Century Aluminum sold a Kentucky smelter to TeraWulf, which plans to develop a digital infrastructure campus to support high-performance computing and artificial intelligence.