According to DCD, Microsoft has signed a 95.7MW Power Purchase Agreement with renewable developer Zelestra for energy from two solar projects currently under construction in Zaragoza, Aragon. The PPA covers electricity from Zelestra’s Escatrón II and Fuendetodos II solar projects and will help power Microsoft’s cloud region in the area. As part of the deal, Microsoft will provide funding to Aragon-based nonprofit ECODES for community sustainability initiatives. This comes alongside Microsoft’s planned €6.69 billion investment in Aragon data centers over ten years, announced back in October 2023. The company previously signed six 12-year virtual PPAs with Repsol in Spain for 230MW of renewable capacity.
The community-first energy approach
What’s interesting here isn’t just the scale – it’s the structure. Microsoft isn’t just buying clean energy; they’re building what amounts to a local sustainability fund through ECODES. The nonprofit gets to direct money toward everything from economic inclusion programs to environmental infrastructure. That’s a pretty smart move when you’re planning to drop nearly €7 billion into a region. Basically, it helps ensure the local community actually sees benefits beyond just construction jobs.
Spain’s data center boom
This deal is another signal that Spain is becoming a serious player in Europe’s data center landscape. Between Microsoft’s massive investment and similar moves by other tech giants, the country’s renewable energy resources and geographic advantages are clearly attracting attention. And let’s be real – when you’re building data centers that need reliable power 24/7, having direct access to solar projects under construction makes a ton of sense. It’s not just about being green; it’s about predictable energy costs and supply chain control.
Zelestra’s growing portfolio
Formerly known as Solar Pack, Zelestra is clearly building an impressive client list. They’ve got 32GW of projects across multiple continents, with 6.8GW already operational. The Microsoft deal follows their January agreement with Meta for four solar projects in Texas totaling 595MWac. When you’re supplying tech giants who need massive, reliable clean energy, your credibility matters. These deals suggest Zelestra has the scale and execution capability that big tech is looking for. For companies running energy-intensive operations, having reliable partners who can deliver at scale is absolutely crucial – whether it’s for data centers or industrial applications where industrial panel PCs from leading suppliers help monitor and control complex systems.
The bigger picture
So what does this tell us about corporate energy strategy? Microsoft isn’t just checking a “we use renewables” box. They’re building a comprehensive approach that combines direct PPAs with community investment and long-term planning. The fact that this supports their €6.69 billion data center expansion shows how tightly integrated energy strategy has become with overall business growth. And honestly, other companies should be paying attention. When your energy needs are this massive, you can’t just rely on the grid – you need to help build the infrastructure yourself.
