Alcoa to sell Massena East site portion for up to $315 million as data center plans emerge

Alcoa plans to sell part of its idle Massena East industrial site in New York for up to $315 million, marking the first step in its broader effort to generate cash from underused assets by 2030. The agreement comes as the aluminum producer prepares to complete its multibillion-dollar acquisition of South32’s bauxite, alumina and aluminum assets while navigating changing metal prices and higher input costs.

The company has reached a definitive agreement with an undisclosed buyer for the Massena East property. The transaction is expected to bring in an initial payment of $50 million to $65 million at closing, which is anticipated within the next six months. The remaining proceeds are expected before the end of the decade, although the agreement allows up to seven years for commissioning.

William Oplinger, Alcoa’s president and CEO, outlined the transaction during the company’s third-quarter earnings call Thursday. He said the deal supports Alcoa’s plan to generate between $500 million and $1 billion through asset monetization by 2030. Two additional deals aligned with the strategy are also in development.

Massena East sale marks first step in Alcoa’s asset strategy

The proposed sale will put part of the long-idle Massena East site to a new use, with a data center planned for the property, according to Oplinger. The buyer’s identity has not been disclosed.

The site has remained inactive since 2014, when Alcoa permanently shut down the remaining potlines at the smelter because of high operating costs and global competition. The company continues to operate its Massena West facility.

The transaction follows earlier reports that Alcoa was in advanced discussions to sell part of the property to New York Digital Investment Group, a bitcoin-focused company. Bloomberg reported in April that a deal could be reached around the middle of 2026. Alcoa has not publicly confirmed whether that company is the buyer under the current agreement.

The Massena East transaction provides an initial step toward Alcoa’s asset monetization target, with the company indicating that two other potential deals are in progress.

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South32 acquisition moves closer to completion

Alongside its plans to unlock value from existing properties, Alcoa is advancing its acquisition of South32’s bauxite, alumina and aluminum assets across Australia, Brazil and South Africa. The transaction, known as AliGroup, is valued at $4.1 billion and is on track to close during the first half of 2027.

South32 shareholders approved the sale Thursday. Alcoa also completed $2.6 billion in debt financing last month to help fund the $3.1 billion cash portion of the transaction. The acquisition was first announced in July.

Oplinger said he met with South African President Cyril Ramaphosa and other stakeholders in the country earlier this month to discuss progress on regulatory approvals.

“We have made meaningful progress towards closing,” he said.

The acquisition represents a major expansion of Alcoa’s position across the bauxite, alumina and aluminum value chain. Its completion remains subject to the ongoing approval process.

Alumina market tightens as aluminum prices ease

Alcoa’s third-quarter results reflected contrasting conditions across its two main product segments. Revenue totaled $3.7 billion, down nearly 7% from the previous quarter, as lower shipments and prices in the aluminum segment weighed on performance. In contrast, third-party sales in the alumina segment increased on higher prices and shipments. The segment includes bauxite mining and the refining of bauxite into smelter-grade raw materials.

Oplinger said the global alumina market had tightened outside China, pushing the alumina price index to $370 per metric ton. He expects the market to tighten further in the next quarter and into 2027, citing production curtailments, project delays and uncertainty as Indonesia expands its smelting capacity.

“For Alcoa, strengthening alumina market conditions and improved operational execution create meaningful upside,” Oplinger said.

Aluminum prices, meanwhile, have retreated from recent highs but remain elevated by historical standards. Production is recovering as Middle Eastern smelters restart, although uncertainty persists over when output will return to pre-conflict levels. In North America and Europe, prices have moderated but continue to receive support from low inventories and regional supply deficits.

These market conditions are shaping Alcoa’s outlook as the company enters the final quarter of the year.

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Alcoa maintains annual production and shipment guidance

Alcoa kept its annual guidance unchanged for both its aluminum and alumina segments. Chief Financial Officer Molly Beerman said the company expects the momentum recorded in the third quarter to continue, with production and shipments increasing across both businesses.

However, higher input costs resulting from elevated market prices, along with planned maintenance, could affect results. Beerman said “underlying performance remains very strong headed into the final quarter of the year.”

For alumina, Alcoa expects annual production of 9.5 million to 9.6 million metric tons, with shipments projected at 11.5 million to 11.6 million metric tons.

For aluminum, the company forecasts production of 2.4 million to 2.6 million metric tons and shipments of 2.6 million to 2.8 million metric tons.

With the Massena East sale underway, additional asset transactions in development and the South32 acquisition progressing toward its planned closing, Alcoa is pursuing its asset monetization strategy while positioning its core businesses to navigate changing supply conditions and market prices.