Morgan Stanley analyst Carlos De Alba says the “AI arms” race has led to interest in repurposing industrial sites with existing MW capacity and the firm argues that Alcoa (AA) could create value from its curtailed assets as tech companies search for sites that they can convert into data centers. The firm, which identified three curtailed Alcoa sites with capacity of 440MWs, sees potential for $400M-$900M of value, equal to 4%-8% of Alcoa’s current market cap, adds the analyst, who has an Overweight rating and $55 price target on the shares.
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