Microsoft and Iberdrola today announced a new partnership to deepen their work together 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 the two 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 to boost Iberdrola's digital capabilities and promote the use of AI throughout the Group. Iberdrola has already migrated critical systems from different business areas to the Azure cloud, demonstrating its 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 (in Burgos) and the El Escudo wind farm (in Cantabria). These contracts enable Microsoft to advance its goal of operating with 100% renewable energy in Europe, in line with its global commitments.

They have been added to the three existing PPAs signed by Microsoft and Avangrid, Iberdrola's US subsidiary, between 2021 and 2025, which include Powell Creek Solar (in 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 partnership will also explore opportunities for work together supplying renewable energy, the use of waste heat in Spain — such as using 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 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.

‘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.