Each year, about 730 million tons of bottom ash is generated in coal fired power plants worldwide. This by-product can be used as partial replacement for Portland cement, favoring resource conservation and sustainability. Substantial research has explored treated and processed coal bottom ash (CBA) for possible use in the construction industry. The present research explores using local untreated and raw CBA in mitigating the alkali–silica reaction (ASR) of reactive aggregates in concrete. Mortar bar specimens incorporating various proportions of untreated CBA were tested in accordance with ASTM C1260 up to 150 days. Strength activity index (SAI) and thermal analysis were used to assess the pozzolanic activity of CBA. Specimens incorporating 20% CBA achieved SAI greater than 75%, indicating pozzolanic activity. Mixtures incorporating CBA had decreased ASR expansion. Incorporating 20% CBA in mixtures yielded 28-day ASR expansion of less than the ASTM C1260 limit value of 0.20%. Scanning electron microscopy depicted ASR induced microcracks in control specimens, while specimens incorporating CBA exhibited no microcracking. Moreover, low calcium-to-silica ratio and reduced alkali content were observed in specimens incorporating CBA owing to alkali dilution and absorption, consequently decreasing ASR expansion. The toxicity characteristics of CBA indicated the presence of heavy metals below the US-EPA limits. Therefore, using local untreated CBA in concrete as partial replacement for Portland cement can be a non-hazardous alternative for reducing the environmental overburden of cement production and CBA disposal, with the added benefit of mitigating ASR expansion and its associated costly damage, leading to sustainable infrastructure.