Amazon Expands Renewable Energy Portfolio with 476 MW Acquisition
Another milestone for renewables sees Amazon securing contracts for the purchase of 476 megawatts of wind and solar energy on the Iberian Peninsula.
These power purchase agreements with the multinational utility Iberdrola are expected to support Amazon’s plans for new data centers in the region. In May of last year, the company announced a $17 billion investment in infrastructure, which includes setting up data centers in Spain.
Recently, Amazon’s energy expenses have surged as the company expands its data centers to accommodate the increasing demand for AI and cloud services.
One key project Amazon is investing in is the Tâmega wind farm, which is being constructed alongside a large hydroelectric dam system in Portugal. This facility comprises three dams, including an 880-megawatt pumped-storage dam.
Pumped-storage systems utilize two reservoirs—one at a higher elevation and another at a lower elevation. When demand for electricity rises, water is released from the upper reservoir to turn turbines. Conversely, during periods of excess power generation, large pumps move water from the lower reservoir back up to the upper one. This mechanism acts like a giant battery.
The 274-megawatts of wind turbines being developed at Tâmega will supply power to the grid via the existing connections of the hydro complex. Additionally, any surplus energy can be employed to pump water to the upper reservoir. Such hybrid setups guarantee a stable supply of power to the grid, even from renewable sources like wind and solar, which can be intermittent.
Furthermore, Amazon is procuring a share of power from more conventional wind and solar facilities in northwestern Spain. Last year, Amazon emerged as the largest purchaser of renewable energy in the market.
Technology companies have been consistently sourcing power from renewable projects, largely fueled by the rapid and cost-effective installation of wind, solar, and battery technologies. Just last month, Meta announced two significant solar power agreements, while Microsoft and Google had already disclosed their backing of multi-billion dollar renewable initiatives.