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 leading Bitcoin mining firm, as it seeks to offload underutilized assets and meet the growing demand for industrial sites with readily available energy infrastructure. According to Alcoa's CEO, Bill Oplinger, the negotiations are at an advanced stage, with the deal expected to be finalized by mid-year, as reported by Bloomberg. The smelter, situated along the St. Lawrence River, has remained idle since its closure in 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 can significantly reduce the time required for bitcoin miners and data center developers to secure access to the grid.
Furthermore, the site has access to low-cost, carbon-free hydropower from the New York Power Authority, making it an attractive proposition for companies seeking to minimize their environmental footprint. This deal is part of a larger trend, as evidenced by Century Aluminum's sale of a Kentucky smelter to TeraWulf earlier this year, which plans to develop a digital infrastructure campus supporting high-performance computing and artificial intelligence applications.