Amazon Expands Renewable Energy Portfolio with 476 MW Acquisition
A notable advancement for renewable energy is Amazon’s completion of contracts to procure 476 megawatts of wind and solar power from the Iberian Peninsula.
These power purchase agreements with the global utility company Iberdrola are expected to enhance Amazon’s plan to establish new data centers in the region. Last May, the corporation announced a $17 billion investment in infrastructure aimed at developing data centers in Spain.
Recently, Amazon has seen a rise in energy costs as the company expands its data centers to accommodate the increasing demand for AI and cloud services.
A significant investment by Amazon includes the Tâmega wind farm, which is being constructed alongside a vast network of hydroelectric dams in Portugal. This project consists of three dams, one of which is an 880-megawatt pumped-storage facility.
Pumped-storage systems utilize two reservoirs—one elevated and another at a lower level. During peak electricity usage, water from the upper reservoir is released to generate power through turbines. Conversely, when there is an excess of power, large pumps move water back to the upper reservoir. This method operates similarly to a large battery.
The 274-megawatt wind turbines being installed at Tâmega will supply electricity to the grid via the hydro facility’s existing connections. Additionally, any surplus energy generated can be employed to pump water back to the upper reservoir. Such hybrid systems provide a steady power supply to the grid, even from fluctuating renewable sources like wind and solar.
Furthermore, Amazon is sourcing a portion of its energy from traditional wind and solar installations in northwestern Spain. Last year, Amazon emerged as the largest purchaser of renewable energy in that area.
Tech companies have been actively seeking energy from renewable projects, largely driven by the swift and cost-efficient implementation of wind, solar, and battery technologies. Just last month, Meta announced two significant solar power agreements, while Microsoft and Google had previously disclosed their involvement in multi-billion dollar renewable initiatives.

