Alcoa has announced that it signed a definitive agreement to sell its former aluminum smelter in Massena, New York, to a data center operator for $315 million. The buyer has not been identified, although NYDIG has reportedly been in discussions to acquire the site.
Alcoa Corporation announced at its earnings briefing that it had signed a definitive agreement to sell the Massena East aluminum smelter in Massena, New York, to a data center operator for up to $315 million. The agreement covers part of the Massena East site, with proceeds expected from cash consideration and ongoing revenue as data center construction progresses.
Massena East is a 1,600-acre site along the St. Lawrence River that includes the former Reynolds Metals facility built in 1958. Alcoa closed the smelter in 2014, citing high-cost power and competition from overseas manufacturers, and the site is now being considered for conversion to data center use. At the earnings briefing, the company said the initial permitted capacity was 180 MW, with phased expansion possible to as much as 635 MW.
NYDIG is reportedly negotiating to acquire Massena East, and BizJournal reported that the site is expected to be developed with NYDIG involved as North Country Colocation Services. NYDIG has not issued an official comment. Expansion of data center operations in the Massena area is being watched as a potential future development.
The plan could involve building two facilities totaling 870,000 square feet on 88 acres of development land, creating a data center campus of up to 635 MW. Alcoa is also considering selling other former smelters in the United States to data center operators, and said at the earnings briefing that there were “2 transactions that could close relatively soon.”
Future developments involving the site, including Massena East's location and plans and NYDIG's activities, are being closely watched.