Link Securities | Spanish electricity company Iberdrola (IBE) announced on Tuesday a partnership with Microsoft to deepen their collaboration 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 both 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, with the aim of boosting Iberdrola’s digital capabilities and promoting the use of AI throughout the Group.
According to the company, Iberdrola has already migrated critical systems from different business areas to the Azure cloud, demonstrating a strong 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 (Burgos) and the El Escudo wind farm (Cantabria). These contracts enable Microsoft to advance its goal of operating with 100% renewable energy in Europe, in line with its global commitments. They are in addition to the three existing PPAs signed by Microsoft and Avangrid, Iberdrola’s US subsidiary, between 2021 and 2025, which include Powell Creek Solar (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.
