Alcoa sells former New York smelter for up to $315 million

Alcoa will receive up to $315 million for its former Massena East smelter in upstate New York — but only $50 million to $65 million of that is guaranteed at closing. The aluminum producer disclosed the deal, signed with an unnamed data center developer, in its Q3 2026 results last week.

The gap between those two figures deserves attention. Almost everything beyond the initial payment is conditional.

What does the agreement actually commit?

Alcoa expects approximately $50m to $65m at closing, depending on how much data center capacity the buyer gets approved. A further $60m to $250m could follow for approved capacity expansions and commissioning during the seven years after closing. Alcoa says most proceeds should arrive within the first five years.

The transaction is expected to close within six months. In its announcement, Alcoa said the deal "creates the potential for meaningful cash proceeds as approved data center capacity is developed by the buyer." Note the wording: potential, not commitment.

On the earnings call, CEO Bill Oplinger framed the sale differently. He said the agreement "represents meaningful progress against our asset monetization strategy."

"It gives us some cash up-front, but it will give us cash further over the next five years as that data center first gets built and then gets increased in size. So, it gives us a lot of upside," Oplinger said.

Upside, again, is conditional. The headline number of $315 million assumes maximum approvals and full commissioning. Neither is assured.

Who is the buyer?

Alcoa did not name the purchaser. The announcement leaves the counterparty blank, which limits what investors can assess.

Circumstantial evidence points to NYDIG, a Bitcoin mining firm previously reported to be in advanced talks over the site. BizJournal reports the site will be developed by North Country Collocation Services, an NYDIG affiliate. NYDIG has not commented.

Site plans filed with the town of Massena planning board name the firm's latest development at 182 & 194 County Road 45 as the former Alcoa East/Reynolds campus. The 88-acre project could total 635MW across two buildings and 870,000 sq ft for "modern computing operations." NYDIG already operates in Massena and filed to expand in the area over the summer.

How much power is available?

EVP and CFO Molly Beerman said on the earnings call that the site is initially permitted for 180MW, with phased growth to a possible 635MW. The permitting ceiling, not construction, will drive how much of the $315 million Alcoa actually collects.

The site itself carries industrial history. Alcoa closed the smelter in 2014, citing high energy costs and cheaper overseas producers. The 1,600-acre former Reynolds Metals facility was built in 1958 and taken over by Alcoa in 2000.

Is this part of a wider pattern?

Yes. Alcoa is marketing ten former smelter sites across the US, targeting data center firms as buyers. Oplinger said two other deals "could happen quickly" but gave no details. The absence of specifics is worth noting; announced intentions have so far outrun signed agreements.

One conversion is already underway. TPG Real Estate Partners is developing a 2,100-acre, gigawatt-scale data center park in Adamstown, Frederick County, Maryland, roughly 25 miles north of Ashburn.

The trend extends beyond Alcoa:

• In February, Century Aluminum sold its Hawesville smelter in Kentucky to TeraWulf, which plans a digital infrastructure campus.
• In early April, Terra Hosting announced the acquisition of a former military base in Indiana.

Former heavy industrial sites offer what hyperscale builders need: land, existing grid connections, and zoning precedents. Whether the Massena deal delivers its full $315 million depends on approvals Alcoa does not control.