Microsoft partners with Iberdrola on wind energy and AI

Microsoft has signed a partnership with Spanish renewable energy firm Iberdrola including two wind PPAs and the deployment of Microsoft’s AI solutions at Iberdrola.

The two new power purchase agreements (PPAs) are for projects located in Spain, totalling 150 MW of power, and include the purchase of electricity from the Iglesias wind farm and the El Escudo wind farm. The PPAs will support Microsoft’s goal of operating with 100% renewable energy in Europe, in line with its global commitments.

Before this, Microsoft had already signed three PPAs with Avangrid, Iberdrola's US subsidiary, between 2021 and 2025, including the Powell Creek Solar project in Ohio, Camino Solar in California, and the Juniper Canyon wind farm in Washington State. In total, the companies have PPA contracts for around 500 MW of capacity in the US and Europe.

Deploying AI within Iberdrola

In addition, the agreement includes expanding the use of Microsoft's Azure computing and cloud platform, the deployment of Microsoft Copilot, as well as security and regulatory compliance solutions to boost Iberdrola's digital capabilities and promote the use of AI within the group. Iberdrola has already migrated critical systems from different business areas to the Azure cloud.

“This partnership with Iberdrola is a strong commitment to speeding up 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’re not only advancing our sustainability goals, we’re also driving innovation and resilience for our customers and communities. Together, we’re setting a new standard for how technology and energy can drive positive change at scale,” said Samer Abu-Ltaif, President of Microsoft for Europe, the Middle East and Africa.

Opportunities to use data centre waste hear

Finally, the two companies will also explore opportunities for work together supplying renewable energy by reusing waste heat in Spain — including heat from data centres in Zaragoza. The partnership also looks at collaboration on electrified land, carbon credits and technological innovations such as hydrogen, battery storage and other solutions.

“This partnership 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' strong commitment to combining major growth in electricity consumption with full decarbonisation. We’re pleased to announce today the signing of our first two PPAs in Europe, expanding our global partnership,” said Aitor Moso, director of Iberdrola's global customer business.