Amazon and Spanish electrical utility Iberdrola have signed three Power Purchase Agreements (PPA), which will see Amazon offtake 476MW of renewable power.

The PPAs include Amazon's first in the Portuguese market, where the hyperscaler signed on to procure 219MW of power from the 274MW Tâmega Wind Complex, currently in pre-construction in Chaves, Norte, Portugal.

When completed, Tâmega will be Portugal's largest operational wind farm. Iberdrola plans to begin construction on the project in early 2025. The wind project is part of the larger Tâmega Power Plant System, which will combine the wind farm with the 1158MW Tâmega hydroelectric complex.

In addition, Amazon also signed two PPAs in the Spanish market for 257MW of energy from solar and wind projects. According to the agreement, Amazon will procure 121MW from the 318MW Ciudad Rodrigo solar PV plant in Salamanca, Western Spain, and 45MW from the 49.5MW Valdemoro wind farm located in the province of Burgos, Northern Spain. Both projects are currently under construction.

"With Iberdrola’s extensive global portfolio of renewables, we are continually seeking to expand such partnerships to accelerate decarbonization and support businesses in reaching their climate goals," Aitor Moso Raigoso, executive vice president customer business at Iberdrola, said.

Further details on the length of the agreement were not disclosed. DCD reached out to both companies for additional information.

The three projects are expected to supply Amazon with 1,093GWh per year. Amazon plans to use the energy to support its commitment to match the electricity consumed by its operations with 100 percent renewable energy as part of its goal to reach net-zero carbon emissions by 2040.

"We are excited to further support Iberdrola in its growth plans, leveraging the scalability and services of AWS in data and AI," said Lindsay McQuade, director of energy for EMEA at Amazon.

Last month, Amazon claimed the title of the largest corporate buyer of renewables for the fifth year running, citing data compiled by BloombergNEF.

Amazon and Iberdrola have been in a strategic partnership since 2022. As part of the agreement, Iberdrola agreed to provide Amazon with renewable energy through long-term PPAs. In return, Amazon agreed to provide access to its cloud services.

Last August, Iberdrola officially selected Amazon Web Services (AWS) as its preferred cloud provider for generative artificial intelligence (AI) workloads. According to the company, Iberdroa will use AWS technologies, including Amazon Bedrock and Amazon SageMaker, to develop generative AI applications that drive efficiency, personalize customer interactions, and improve energy production processes.

Following the most recent PPAs, the partners have signed 11 PPAs for a total of more than 1.5GW of renewable energy.

Recent PPAs include an agreement to offtake 159MW from the East Anglia Three offshore wind farm signed last March.

Before this, in February, it signed a further PPA with Iberdrola to offtake from the 98.4MW Juniper IIA wind farm in Oregon.

In addition, in March 2023, Amazon inked a PPA to offtake energy from two of Iberdrola’s offshore windfarms in Germany, Baltic Eagle and Windanker. These wind farms will provide Amazon with 1100GWh annually.

Bilbao-based Iberdrola has more than 40,000 customers worldwide and manages grid capacity of more than 60,000MW. It is one of the largest renewable energy suppliers globally and has PPAs with several major data centers.