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 it seeks to divest idle assets and meet the growing demand for industrial sites with existing energy infrastructure. According to Alcoa's CEO, Bill Oplinger, the company is in advanced negotiations and expects the transaction to be completed by mid-year, as reported by Bloomberg.
The site, situated along the St. Lawrence River, has remained idle since 2014 due to high operational costs and global competition. However, its appeal lies not in its aluminum production capabilities but in its existing power infrastructure, which includes dedicated substations and transmission lines. This infrastructure is highly attractive to bitcoin miners and data center developers, as it significantly reduces the time required to secure access to the power grid.
Furthermore, the site has access to low-cost, carbon-free hydropower from the New York Power Authority, making it an ideal location 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 develop a digital infrastructure campus supporting high-performance computing and artificial intelligence.