ALTON — Alton Steel Inc. said Oct. 21, 2026, it is advancing a proposed sale of its former steel mill property to data center developer TerraWatt, seeking to repay creditors and return the 381-acre industrial site to productive use.
The proposed sale of the property at 5 Cut Street follows a real estate marketing and evaluation process overseen by Alton Steel’s board of directors. The transaction remains subject to contingencies and approvals, including those related to TerraWatt’s intended use of the site.
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Alton Steel ceased operations in January 2026 after years of efforts to sustain the business, ending more than a century of steel production at the property. Since then, the board has overseen the company’s voluntary dissolution, including liquidating assets and working to satisfy outstanding financial obligations.
“Closing Alton Steel was an extraordinarily difficult decision, particularly given the employees and families whose livelihoods were connected to this mill,” CEO Chris Ervin said. “Our responsibility now is to manage the company’s remaining obligations and secure the best possible outcome for our creditors. This proposed sale represents a significant opportunity to do that while giving the property a productive future.”
The company hired JLL Commercial Real Estate Advisory to market the property and evaluate prospective buyers. According to Alton Steel, the process considered the property’s value, infrastructure, environmental conditions, redevelopment requirements and buyers’ ability to complete a transaction.
The board determined that pursuing a sale to TerraWatt offered the strongest available opportunity to maximize the property’s value and satisfy remaining obligations, the company said. Its creditors include local businesses, suppliers and contractors that supported the mill’s operations.
The site includes 1.26 million square feet of industrial buildings, an electrical substation and distribution systems, a 5-megawatt solar field, direct industrial natural gas service, wastewater treatment facilities and rail access.
Alton Steel said that infrastructure and the property’s established industrial use make it well suited for consideration as a data center campus. Redevelopment also would require addressing environmental conditions associated with more than a century of heavy industrial activity, obsolete facilities and applicable environmental requirements.
Based on information presented to the company, Alton Steel said the proposed redevelopment could produce a more favorable long-term environmental outcome than the site’s historic steelmaking operations.
“We felt good about the process we undertook to market this property and evaluate the opportunities available to us,” said John Simmons, an Alton Steel board member. “We relied on experienced real estate professionals to identify prospective purchasers and help us evaluate the strongest possible outcome. We believe TerraWatt has presented an exceptional opportunity for the property and for our creditors. There is still work to be done, but we are encouraged by where that process has led.”
Simmons said questions about data center development should be addressed as TerraWatt advances its plans.
“Data centers are being developed across the country, and communities are right to ask what responsible development looks like,” Simmons said. “We expect TerraWatt to undertake a thorough community engagement process and use that input to inform its final plans. We’ve also been working with the city of Alton, whose leadership has been forthcoming with its questions and clear about its commitment to community input. We appreciate that approach and believe it is important to getting this right.”
Alton Steel said it will continue working toward completion of the proposed transaction under the board’s direction.
The proposed sale comes as Alton officials begin their own review of TerraWatt’s plans for the property. The city is examining potential economic benefits as well as questions involving water and electricity use, noise, traffic and environmental impacts. Read more about the city’s review of the proposed Alton data center campus and an upcoming public open house here.
