Microsoft and Iberdrola Seal European Wind PPA

Microsoft commits to its first European wind power contract, driving clean power consumption and digital transformation in Spain.

Microsoft and Iberdrola have confirmed that they have signed a long-term deal to enhance the implementation of renewable energy in the European region by means of a massive purchase of wind power in Spain. The transaction is the first European power purchase agreement (PPA) between the companies and also represents an increased corporate interest in renewable energy to meet decarbonization objectives.

Microsoft will purchase under the agreement 150 megawatts (MW) of wind power in the Iglesias wind farm in Burgos and the El Escudo wind farm in Cantabria. The clean energy will also facilitate the mission by Microsoft, which is running on 100 percent renewable energy throughout Europe, in addition to aiding the growing wind industry in Spain.

The partnership will involve digital transformation in addition to power supply. At the international level, Microsoft will increase the usage of its AI and Azure cloud in the global activities of Iberdrola. The combination of renewable energy and cutting-edge technology will enable both companies to become more efficient in their operations and help these organizations grow over time.

According to industry analysts, these PPAs are slowly gaining prominence in financing renewable energy, both in providing price stability to the buyers as well as allowing developers to finance new projects. As the use of AI-powered data centers puts a heavy burden on power demand, long-range clean power agreements are considered essential in matching growth with the climate ambitions.

The deal also makes Iberdrola a major force in the clean energy move in Europe and strengthens the overall policy Microsoft has to match the growth in technology to sustainable power sourcing.