Microsoft and Iberdrola have announced an expanded partnership focused on renewable energy supply and the use of artificial intelligence, reinforcing a collaboration that spans Europe and the United States.
As part of the agreement, the two companies have signed two long-term power purchase agreements (PPAs) in Spain, marking their first such deals together in Europe. The PPAs cover a combined 150 MW of capacity and relate to electricity from the Iglesias wind farm in Burgos and the El Escudo wind farm in Cantabria.
Alongside the energy contracts, the partnership includes plans to extend Iberdrola’s use of Microsoft’s Azure cloud platform, as well as the deployment of Microsoft Copilot and digital security and regulatory compliance solutions. Iberdrola has already migrated several critical systems from across its business to Azure, as part of efforts to strengthen digital capabilities and operational resilience.
The Spanish PPAs support Microsoft’s objective of operating on 100% renewable electricity in Europe and add to existing agreements between Microsoft and Avangrid, Iberdrola’s US subsidiary. Between 2021 and 2025, the companies signed PPAs covering renewable projects in Ohio, California and Washington state. Taken together, Microsoft and Iberdrola now have PPA contracts totalling around 500 MW of capacity across Europe and the United States.
The expanded partnership also includes plans to explore further collaboration on renewable energy supply, the use of waste heat from data centres in Spain — including potential projects in Zaragoza — electrified land, carbon credits and technologies such as hydrogen and battery storage. These initiatives may involve Iberdrola’s operations and 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,” said Samer Abu-Ltaif, president of Microsoft for Europe, the Middle East and Africa. “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.”
Aitor Moso, director of Iberdrola’s global customer business, said the agreement would support wider adoption of artificial intelligence across the group while expanding its renewable energy portfolio with Microsoft. “We’re pleased to announce today the signing of our first two PPAs in Europe, expanding our global partnership,” he said.
