Microsoft and Iberdrola announced a new partnership on December 16, 2025, 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, marking the first agreements the two companies have signed in Europe.

Power Purchase Agreements in Spain

The two new PPAs in Spain total 150 MW of contracted power and include the purchase of electricity from the Iglesias wind farm in Burgos and the El Escudo wind farm in Cantabria. These contracts enable Microsoft to advance its goal of operating with 100% renewable energy in Europe, in line with its global commitments.

The Spanish agreements join three existing PPAs signed by Microsoft and Avangrid, Iberdrola's US subsidiary, between 2021 and 2025. The existing US agreements include Powell Creek Solar in Ohio, Camino Solar in California, and the Juniper Canyon wind farm in Washington. In total, the companies now have PPA contracts for around 500 MW of capacity in the United States and Europe.

Technology and AI Integration

The agreement envisages expanding the use of Microsoft's Azure cloud and computing platform, deploying Microsoft Copilot, and implementing security and regulatory compliance solutions to boost Iberdrola's digital capabilities and promote AI use across the Group. Iberdrola will continue to leverage the Azure cloud and Microsoft's data and AI products to speed up implementation of AI across the Group.

Iberdrola has already migrated critical systems across different business areas to Azure, demonstrating its firm commitment to innovation and operational resilience. The partnership will accelerate the adoption of AI across the Iberdrola Group to strengthen its leading digital capabilities and expand its renewable PPA portfolio with Microsoft.

Future Collaboration Opportunities

The partnership will explore opportunities for collaborative work across several areas and regions. These include supplying renewable energy, using waste heat in Spain, such as heat from data centers in Zaragoza, electrified land, carbon credits, and technological innovations, including hydrogen and battery storage solutions.

The collaboration will extend to work with Iberdrola and its subsidiaries in Europe, the United States, Brazil, and Australia. The companies are committed to achieving major growth in electricity consumption while pursuing full decarbonization.

Executive Statements

Samer Abu-Ltaif, President of Microsoft for Europe, the Middle East and Africa, described the partnership as “a strong commitment to speeding up the energy transition and digital transformation in the industry.” He stated that by combining Iberdrola's leadership in renewable energy with Microsoft's cutting-edge cloud and AI technologies, the companies are,

“not only advancing our sustainability goals, we're also driving innovation and resilience for our customers and communities” Abu-Ltaif added that together, they are “setting a new standard for how technology and energy can drive positive change at scale”.

Aitor Moso, Director of Global Customer Business at Iberdrola, emphasized that the partnership aligns with both companies' strong commitment to achieving major growth in electricity consumption while pursuing full decarbonization. Moso expressed pleasure at announcing the signing of the first two PPAs in Europe, describing it as an expansion of their global partnership.

He noted that the partnership will accelerate the adoption of AI across the Iberdrola Group to strengthen their leading digital capabilities and expand their renewable PPA portfolio with Microsoft.

The announcement was made on December 16, 2025, marking a significant expansion of the existing relationship between the two companies into the European market while deepening their technological collaboration through AI and cloud computing solutions.

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