Microsoft has signed two Power Purchase Agreements (PPA) with Iberdrola in Spain representing 150MW of contracted capacity.

The power is tied to two onshore wind power projects in the country, the 94MW Iglesias Wind Farm, in Burgos, Castilla y León and the 101MW El Escudo Wind Farm, in Cantabria.

“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,” said Aitor Moso, director of Iberdrola’s global customer business.

“We’re pleased to announce today the signing of our first two PPAs in Europe, expanding our global partnership,”

In addition to the PPAs the companies stated their intention to deepen collaboration on energy and AI projects.

As part of the agreement, the companies aim to expand the use of Microsoft’s Azure computing and cloud platform, the deployment of Microsoft Copilot, and security and regulatory compliance solutions to support Iberdrola’s digital capabilities and boost the use of AI across the company.

The partnership will also explore further opportunities within the renewable sector, support the utilization of waste heat from data centers, and look into the potential of emerging technologies such as hydrogen, battery storage and other solutions.

“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.”

“Together, we’re setting a new standard for how technology and energy can drive positive change at scale,”

Microsoft has signed three PPAs with Iberdrola’s US subsidiary Avangrid, across Ohio, California, and Washington. Following the latest agreements, the companies have more than 500MW of renewable procurement agreements in place.

Iberdrola has signed numerous PPAs with data center firms. In February, the company signed three PPAs with Amazon to supply the company with 476MW of power across Portugal and Spain.

Bilbao-based Iberdrola has more than 40,000 customers worldwide and manages grid capacity of more than 60,000MW.