Takeaways

• Microsoft signs long-term clean energy and AI deployment deal in Spain with Iberdrola, marking its first renewable energy PPAs in Europe.
• The partnership covers 150 MW of wind power in Spain and expands collaboration on AI, cloud, and decarbonization technologies.
• The deal supports Microsoft’s 100/100/0 clean energy goal and Iberdrola’s push to scale digital and renewable capabilities.

Microsoft and Spanish energy major Iberdrola have announced a new long-term partnership that brings together clean energy procurement and artificial intelligence deployment, strengthening both companies’ decarbonization and digital transformation strategies.

At the heart of the agreement are Microsoft’s first renewable energy power purchase agreements (PPAs) in Europe. The two long-term PPAs are signed in Spain and will deliver a combined 150 MW of electricity from Iberdrola’s Iglesias wind farm in Burgos and the El Escudo wind farm in Cantabria. The electricity will support Microsoft’s growing energy demand, driven largely by cloud services and AI workloads.

These new agreements build on an existing relationship between the two companies in the United States. Between 2021 and 2025, Microsoft signed three PPAs with Avangrid, Iberdrola’s US subsidiary, covering solar and wind projects in Ohio, California, and Washington. With the addition of the Spanish projects, the total renewable energy capacity contracted between Microsoft and Iberdrola now stands at around 500 MW across Europe and the US.

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Beyond power procurement, the partnership outlines broader cooperation on clean energy and climate solutions. The companies will explore opportunities related to renewable energy supply, waste heat use in Spain, electrified land, carbon credits, and emerging technologies such as hydrogen and battery storage. These initiatives may involve Iberdrola’s operations not only in Europe, but also in the US, Brazil, and Australia.

The deal also aligns closely with Microsoft’s climate commitments. In 2021, the company launched its “100/100/0 clean energy goal,” aiming to match 100% of its electricity consumption, 100% of the time, with zero-carbon energy purchases by 2030. This builds on Microsoft’s earlier pledge to power all its buildings and data centres globally with 100% renewable energy by 2025. The company has also committed to becoming carbon negative by 2030.

Samer Abu-Ltaif, President of Microsoft for Europe, the Middle East, and Africa, said the partnership reflects a shared ambition. He noted that combining Iberdrola’s renewable energy leadership with Microsoft’s cloud and AI technologies would help accelerate the energy transition while boosting innovation and resilience for customers and communities.

On the digital side, the agreement includes plans to expand Iberdrola’s use of Microsoft’s Azure cloud platform, as well as deploy Microsoft Copilot and security and regulatory compliance solutions. Iberdrola has already migrated several critical systems to Azure and plans to further integrate AI across its operations.

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Aitor Moso, Director of Iberdrola’s global customer business, said the partnership would accelerate AI adoption across the group, strengthen digital capabilities, and expand its renewable PPA portfolio with Microsoft, while supporting full decarbonization alongside rising electricity demand.

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Source: ESGtoday