Microsoft has signed two long-term Power Purchase Agreements (PPAs) with Iberdrola for a total of 150 MW, marking the first energy collaboration between the two companies in Europe. The agreements cover the Iglesias wind farm, located in the province of Burgos, and the El Escudo wind farm in the Cantabria region.
First European contracts for the tech-energy duo
These agreements add to the three existing PPAs already in place between Microsoft and Avangrid, Iberdrola’s US subsidiary. These cover the Powell Creek Solar facility in Ohio, Camino Solar in California, and the Juniper Canyon wind farm in Washington state. With the new agreements in Spain, the total contracted capacity between the two groups now reaches approximately 500 MW across the Atlantic.
Deeper integration of cloud and artificial intelligence technologies
Alongside the supply agreements, the partnership includes intensified use of Microsoft’s digital services by Iberdrola. The Spanish energy company will continue migrating critical systems to the Microsoft Azure cloud platform. The stated aim is to scale up the use of artificial intelligence across the group, particularly through Microsoft Copilot and other security and regulatory compliance solutions.
Development prospects in key markets
The partnership also includes broader cooperation opportunities. These involve the use of residual heat from data centres, projects in hydrogen, battery storage, and carbon credits. Further initiatives are being explored in markets where Iberdrola operates, including Spain, the United States, Brazil, and Australia.
