Amazon has made significant strides in renewable energy by entering into agreements to acquire 476 megawatts (MW) of wind and solar power across the Iberian Peninsula.
This is part of the tech giant’s strategy to support its upcoming data centres in the region, following its announcement last May of a $17 billion investment in infrastructure projects, including data centres, in Spain.
As demand for artificial intelligence and cloud services surges, Amazon’s energy expenses have been rising. Among the key projects included in this initiative is the Tâmega wind farm, which is being constructed alongside a large hydroelectric dam system in Portugal. This complex features three dams, with one being an impressive 880 MW pumped-storage facility.
Pumped-storage systems operate with two reservoirs at different elevations. When electricity demand increases, water from the upper reservoir is released to generate power via turbines. Conversely, during periods of low demand, water is pumped back up from the lower reservoir to the upper one, functioning similarly to a large battery.
The Tâmega project will incorporate 274 MW of wind turbines that will connect to the grid through the existing infrastructure of the hydroelectric complex. This hybrid setup allows for a stable power supply from renewable sources like wind and solar, which can be intermittent.
In addition to the Tâmega project, Amazon is also securing energy from traditional wind and solar facilities located in northwestern Spain. Notably, last year, Amazon emerged as the leading corporate buyer of renewable energy.
The trend of tech companies investing in renewable energy projects has been consistent, largely due to the rapid and cost-effective deployment of wind, solar, and battery technologies. Recently, Meta announced two major solar power agreements, while Microsoft and Google have also committed to substantial renewable investments.