Amazon Renewable Energy: 476 MW Purchase Announced

Amazon Expands Renewable Energy Portfolio in Iberia

Renewable energy sources have gained further traction with Amazon's recent agreements to procure 476 megawatts of wind and solar power on the Iberian Peninsula.

These power purchase agreements, established with the international energy provider Iberdrola, are intended to support the operation of Amazon’s forthcoming data centers within the region.

Investment in Iberian Infrastructure

In May of the previous year, Amazon announced a substantial $17 billion investment in infrastructure projects across Spain, with a significant portion allocated to the development of new data centers.

The increasing demand for artificial intelligence and cloud services is driving a notable increase in Amazon’s energy consumption, necessitating the expansion of its data center capacity.

Tâmega Wind Farm and Hydroelectric Integration

A key component of Amazon’s investment is the Tâmega wind farm, which is being constructed in conjunction with a large-scale hydroelectric dam system in Portugal.

This complex comprises three dams, including a significant 880-megawatt pumped-storage facility.

The Role of Pumped Storage

Pumped-storage hydroelectricity utilizes two reservoirs at differing elevations. Water is released from the upper reservoir to generate electricity via turbines when demand is high.

Conversely, excess energy is used to pump water from the lower reservoir back to the upper one, effectively functioning as a large-scale energy storage solution.

Hybrid Renewable Systems

The 274 megawatts of wind turbine capacity at Tâmega will integrate with the existing hydroelectric grid connection. Surplus energy generated by the wind turbines will be utilized to pump water uphill into the upper reservoir.

This hybrid approach ensures a more reliable and consistent power supply, mitigating the intermittent nature of renewable resources like wind and solar.

Additional Renewable Energy Procurement

Beyond the Tâmega project, Amazon is also securing power from conventional wind and solar installations located in northwestern Spain.

Notably, Amazon was the leading corporate purchaser of renewable energy throughout the past year.

Industry Trend: Tech Companies and Renewable Energy

The acquisition of renewable energy by technology companies has been steadily increasing, largely due to the rapid deployment and cost-effectiveness of wind, solar, and battery storage technologies.

Recently, Meta announced two significant solar power agreements, while Microsoft and Google have both committed to multi-billion dollar investments in renewable energy initiatives.