Alcoa, the largest US aluminum producer, is on the verge of selling its dormant Massena East smelter in upstate New York to New York Digital Investment Group, a bitcoin mining firm, as part of its strategy to offload idle assets and tap into the growing demand for industrial sites with existing energy infrastructure. According to CEO Bill Oplinger, the negotiations are at an advanced stage, with the deal expected to be finalized mid-year, as reported by Bloomberg.
The smelter, situated along the St. Lawrence River, has remained inactive since 2014 due to high operational costs and intense global competition. Its appeal, however, lies not in aluminum production but in its existing power infrastructure, designed to operate continuously and draw substantial amounts of electricity. This setup is particularly attractive to bitcoin miners and data center developers, as it significantly reduces the time and effort required to secure access to the power grid.
Additionally, the site benefits from access to low-cost, carbon-free hydropower courtesy of the New York Power Authority, making it an ideal location for companies seeking to minimize their energy expenses and environmental footprint. This transaction reflects a broader trend, as evidenced by Century Aluminum's recent sale of a Kentucky smelter to TeraWulf, which intends to establish a digital infrastructure campus for high-performance computing and AI applications.