Amazon (NASDAQ:AMZN) has announced an extension of its collaboration with Iberdrola, a global energy provider, for the procurement of 476 MW of renewable energy in Spain and Portugal. The move is part of Amazon’s strategy to align its electricity consumption with renewable energy sources across its operations, underscoring its commitment to sustainability. This agreement further strengthens ties between the two companies, reflecting shared goals of advancing renewable energy adoption and supporting global carbon reduction efforts.
What does the agreement include?
The agreement involves two significant energy procurement projects in Iberian countries. In Portugal, Amazon has committed to buying 219 MW of renewable energy from the Tâmega Wind Complex, a project expected to become the largest wind farm in the country, catering to the electricity needs of approximately 128,000 households annually. Iberdrola plans to invest €350 million in the construction of this project, which is set to begin in 2025. Additionally, Amazon will purchase 257 MW of solar and wind energy from two projects in Spain: the Ciudad Rodrigo solar PV plant in Salamanca and the Valdemoro wind farm in Burgos.
How does this partnership extend beyond energy procurement?
Beyond renewable energy, the collaboration also incorporates services from Amazon Web Services (AWS). Iberdrola has designated AWS as its primary cloud provider for generative AI workloads, leveraging AWS technology to enhance its windfarm operations and improve weather forecasting. Furthermore, Iberdrola plans to develop a Virtual Desktop as a Service platform with AWS in 2025, demonstrating the multifaceted nature of the partnership.
The partnership builds on a previous agreement established in 2022, which covered renewable energy purchases in the U.S., UK, and Germany. By expanding to include Spain and Portugal, the collaboration now spans five countries, reflecting a mutual commitment toward accelerating decarbonization efforts.
Amazon’s recent achievements in renewable energy highlight the company’s rapid progress. In 2024, it maintained its position as the leading corporate purchaser of renewable energy globally for the fifth consecutive year. The company also met its goal of powering its operations with 100% renewable energy, seven years earlier than planned. These milestones align with its broader Climate Pledge, which aims for net-zero carbon emissions across its operations by 2040. Iberdrola, for its part, continues to emphasize its global renewable energy portfolio to support businesses in meeting climate goals.
Amazon and Iberdrola’s announcement reflects similar energy procurement trends seen in recent years. Other corporations have also scaled their renewable energy initiatives, often leveraging partnerships or power purchase agreements to meet sustainability objectives. However, Amazon’s status as a leader in corporate renewable energy purchasing sets it apart from many peers.
As climate concerns drive organizations to rethink energy consumption, partnerships like this underline the pivotal role of collaboration. For businesses, renewable energy investments not only reduce emissions but also align with consumer and regulatory expectations. Expanding such partnerships across more regions and technologies, such as AI-powered grid optimization, could further accelerate the renewable energy transition globally.
