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 firm, as part of its strategy to offload dormant assets and capitalize on the demand for energy-ready industrial locations. According to CEO Bill Oplinger, the company is in advanced negotiations and expects the deal to be finalized by the middle of the year, as reported by Bloomberg.
The site, situated along the St. Lawrence River, has been idle since 2014, when Alcoa shut it down due to high operational costs and global competition. The appeal of the site lies not in its aluminum production capabilities but in its existing power infrastructure. Aluminum smelters are designed to operate continuously, drawing significant amounts of electricity through dedicated substations and transmission lines, which remain intact even after the smelter is closed.
This can save bitcoin miners and data center developers years of time in securing grid access. Additionally, Massena East has access to hydropower from the New York Power Authority, making it an attractive option for companies seeking low-cost, carbon-free 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 build a digital infrastructure campus to support high-performance computing and AI.