The tech sector is setting the pace for the European PPA market. Companies like Amazon, Google, and Microsoft have taken a leading role in the transition to renewable sources, driving the demand for long-term energy agreements.

“Tech companies are significantly driving the PPA market, not only as major consumers but also as leaders in sustainability and energy efficiency,” affirms Miguel Marroquín, Managing Director de Our New Energy.

In 2024, these three companies accumulated nearly 3,000 MW in PPAs, with Amazon leading the largest contract of November.

According to the One Insights report, the monthly average of transactions in Europe reached 1,132 MW, with tech companies standing out as the main market players.

Moreover, corporate demand for PPAs has grown by 50% since 2020, establishing itself as the main driving force behind the market.

“PPAs have become the most efficient tool to secure renewable energy at competitive prices, an imperative need for tech companies,” explains the consultant in an interview with Energía Estratégica España.

Data centers: the driving force behind demand

The activity of tech companies requires large volumes of electricity, particularly for the operation of data centers that process vast amounts of information.

Among the major players, Amazon has established itself as the largest PPA buyer, with a total of 693 MW signed in 2024, closely followed by Google and Microsoft.

“Amazon’s leadership reflects how companies are integrating sustainability into their long-term operational strategies,” highlights Marroquín.

Furthermore, the report positions tech companies as key players not only due to their consumption volumes but also for the momentum they generate in the renewable industry, promoting the construction of new solar and wind farms.

Spain: a hub for tech PPAs

“Spain remains an attractive destination for major tech companies due to its regulatory stability and commitment to the energy transition,” says Marroquín.

This scenario has allowed companies like Amazon to find a key location in Spain for their energy operations.

The prominence of tech companies not only guarantees the development of renewable projects but also sets sustainability standards for other industries.

In the European market, Spain ranks second in total contracted capacity, just behind Greece. It reported 994 MW, driven by sectors such as food and manufacturing.