Microsoft and Spanish multinational energy company Iberdrola announced the launch of a new partnership, including the signing of their first renewable energy power purchase agreements (PPAs) in Europe, and initiatives to accelerate the deployment of AI across Iberdrola’s operations.

The new collaboration includes two long-term PPAs in Spain, totalling 150 MW of electricity from Iberdrola’s Iglesias wind farm in Burgos and the El Escudo wind farm in Cantabria. The new agreements add to three PPAs already signed between Microsoft and Avangrid, Iberdrola’s US subsidiary, between 2021 and 2025, covering solar and wind projects in Ohio, California and Washington, bringing the total contracted renewables capacity between the companies to around 500 MW across Europe and the US.

The partnership will also explore collaboration on renewable energy supply, waste heat use in Spain, electrified land, carbon credits and technologies such as hydrogen and battery storage, involving Iberdrola’s operations in Europe, the US, Brazil and Australia.

In 2021, Microsoft launched a “100/100/0 clean energy goal,” with the company targeting having 100% of its electricity consumption, 100% percent of the time, matched by purchases from zero carbon energy sources by 2030, adding to its prior commitment to use 100% renewable energy in its buildings and datacenters globally by 2025. Microsoft has also committed to become carbon negative by 2030, and to cover 100% of its electricity consumption in its buildings and datacenters globally with renewable energy by 2025.

Samer Abu-Ltaif, President of Microsoft for Europe, the Middle East and Africa, said:

“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 also driving innovation and resilience for our customers and communities.”

The agreement also includes plans to increase Iberdrola’s use of Microsoft’s Azure cloud computing platform, alongside the deployment of Microsoft Copilot and security and regulatory compliance solutions to strengthen digital capabilities and promote the use of AI across the group. Iberdrola has already migrated critical systems from several business areas to the Azure cloud.

Aitor Moso, Director of Iberdrola’s global customer business, said:

“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.”