Iberdrola and Microsoft strengthen their alliance with two long-term PPAs for 150 MW and the use of new global AI solutions

Microsoft and Iberdrola have announced a new alliance to deepen their collaboration on energy and artificial intelligence projects. The partnership builds on the success of previous initiatives and includes the signing of two long-term power purchase agreements (PPAs) in Spain, the first that both companies have signed in Europe.

The agreement envisages expanding the use of Microsoft's Azure computing and cloud platform, the deployment of Microsoft Copilot and security and regulatory compliance solutions, with the aim of boosting Iberdrola's digital capabilities and promoting the use of AI throughout the Group.

Iberdrola has already migrated critical systems from different business areas to the Azure cloud, demonstrating a firm commitment to innovation and operational resilience.

The two new PPAs in Spain, totalling 150 MW of contracted power, include the purchase of electricity from the Iglesias wind farm (Burgos) and the El Escudo wind farm (Cantabria). These contracts enable Microsoft to advance its goal of operating with 100% renewable energy in Europe, in line with its global commitments.

They are in addition to the three existing PPAs signed by Microsoft and Avangrid, Iberdrola's US subsidiary, between 2021 and 2025, which include Powell Creek Solar (Ohio), Camino Solar (California) and the Juniper Canyon wind farm (Washington). In total, the companies have PPA contracts for around 500 MW of capacity in the United States and Europe.

The alliance will also explore opportunities for collaboration in the supply of renewable energy, the use of waste heat in Spain — such as the use of heat from data centres in Zaragoza — electrified land, carbon credits and technological innovations such as hydrogen, battery storage and other solutions, together with Iberdrola and its subsidiaries in Europe, the US, Brazil and Australia.

"This partnership with Iberdrola is a strong commitment to accelerating the energy transition and digital transformation in the industry. By combining Iberdrola's leadership in renewable energy with Microsoft's cutting-edge cloud and AI technologies, we are not only advancing our sustainability goals, but also driving innovation and resilience for our customers and communities. Together, we are setting a new standard for how technology and energy can drive positive change on a large scale," said Samer Abu-Ltaif, President of Microsoft for Europe, the Middle East and Africa.

"This collaboration will accelerate the adoption of AI across the Iberdrola Group to strengthen our leading digital capabilities and expand our renewable PPA portfolio with Microsoft, in line with both companies' firm commitment to combine strong growth in electricity consumption with full decarbonisation. We are pleased to announce today the signing of our first two PPAs in Europe, expanding our global alliance," said Aitor Moso, director of Iberdrola's global customer business.