Alcoa Completed Sale of Former Eastalco Site for $100 Million

SEATTLE (Scrap Monster): Pittsburgh-based Alcoa Corporation announced completion of sale of land in the state of Maryland for $100 million in cash. The company expects to record a gain of around $90 million from this transaction during Q2 2021.

The 2,100-acre property in Frederick County had earlier served as the site the erstwhile Eastalco smelter, which had permanently closed its doors in 2010. Since the closure of the smelter, Alcoa has been working to prepare the site for redevelopment, thus making it eligible for new business opportunities. The company has taken the former industrial site through a long remediation process and has brought it forward for new industrial use.

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The sale transaction, between Eastalco Aluminum Company, a wholly owned subsidiary of Alcoa Corporation, and a joint venture between Quantum Loophole and TPG Real Estate Partners (TREP), came to a close during last week. The buyer intends to use the repurposed land to set up next-generation data centers, thereby creating new employment opportunities locally.

Josh Snowhorn, Founder and CEO of Quantum Loophole stated that the property is ideal for a data center project of unprecedented scale. The entitlement, power, water, and proximity to Northern Virginia of the location offers the right mix needed for the success of the Internet industry in the region, he added.