Alcoa, the largest aluminum producer in the United States, 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 the company divests idle assets and leverages the demand for industrial sites with readily available energy infrastructure. According to Alcoa's CEO, Bill Oplinger, the negotiations are advanced, with the deal expected to be finalized mid-year, as reported by Bloomberg. The smelter, situated along the St. Lawrence River, has remained idle since 2014 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, 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 needed 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 ideal location for companies seeking affordable and sustainable energy solutions. This transaction reflects a larger trend, as seen earlier in the year when Century Aluminum sold a Kentucky smelter to TeraWulf, which plans to develop a digital infrastructure campus supporting high-performance computing and artificial intelligence.