Alcoa, the largest aluminum producer in the US, is on the verge of selling its unused Massena East smelter in upstate New York to New York Digital Investment Group (NYDIG), a Bitcoin firm, as part of its strategy to offload inactive assets and capitalize on the demand for industrial sites with readily available energy. According to CEO Bill Oplinger, the company is in advanced negotiations and anticipates the deal to be finalized mid-year, as reported by Bloomberg. The site, situated along the St. Lawrence River, has been dormant since 2014 due to high operational costs and global competition.
What makes this site attractive is not the aluminum itself, but rather the existing power infrastructure. Aluminum smelters operate continuously, requiring substantial amounts of electricity, which is supplied through dedicated substations and transmission lines. When these smelters shut down, the infrastructure remains, offering a significant advantage for bitcoin miners and data center developers by reducing the time it takes to secure access to the grid.
Additionally, the Massena East site has access to low-cost, carbon-free hydropower from the New York Power Authority, making it an appealing option for companies seeking affordable and sustainable energy. This deal is part of a larger trend, as seen earlier this year when Century Aluminum sold a Kentucky smelter to TeraWulf, which plans to develop a digital infrastructure campus supporting high-performance computing and AI.