Amazon’s offshore wind deal could reset the corporate PPA playbook in the UK

Amazon’s long-term power purchase agreement (PPA) for electricity from Iberdrola’s East Anglia Three offshore wind farm marks one of the most strategic clean energy alignments between a hyperscale tech firm and a European renewables developer in 2025. Signed in 2024 and now public as part of Iberdrola’s €4.1 billion green financing announcement, the agreement will provide Amazon with a share of the 1,400 MW project’s clean power output—backed by one of the most mature offshore wind infrastructure projects in the United Kingdom. The move underscores how corporate buyers, especially in cloud infrastructure, are evolving their energy sourcing strategies to meet round-the-clock decarbonization goals.

The deal places Amazon among the first technology giants to directly secure power from a UK-based offshore wind project at this scale, and could act as a blueprint for hyperscalers looking to anchor energy-intensive data center growth with long-term offshore wind commitments.

How does Amazon’s East Anglia Three PPA reflect rising demand for long-term renewables in hyperscale cloud operations?

Amazon’s PPA with East Anglia Three is more than just a climate milestone—it is a direct response to the operational demands of its hyperscale cloud division, Amazon Web Services (AWS), which continues to expand across the UK and Europe. Offshore wind, with its high capacity factors and increasingly predictable output, is seen as a viable clean baseload source for large cloud operators under pressure to match 100% of their electricity consumption with renewable generation in every region.

The East Anglia Three PPA contributes to Amazon’s 2040 net-zero roadmap while hedging against future volatility in wholesale power prices. Unlike many solar-heavy portfolios that require energy storage or balancing from fossil fuel sources, offshore wind PPAs provide more consistent generation across dayparts. This stability becomes critical as AWS scales services like AI training and real-time video processing, which place sustained demand on data center uptime and energy intensity.

Industry observers note that Amazon’s decision to partner with Iberdrola—a top-tier European electric utility developer with proven offshore execution—gives added confidence to banks financing the €5.2 billion East Anglia Three project. It also validates the structure of UK Contracts for Difference (CfDs), which operate in parallel to the private PPA, creating a layered revenue model that reduces risk for all parties involved.

Could Amazon’s offshore wind strategy influence how other hyperscalers secure clean power in Europe?

The significance of Amazon’s East Anglia Three PPA extends beyond the energy markets into corporate sustainability playbooks. Until now, most hyperscalers—including Google, Microsoft, and Meta—have leaned heavily on solar and onshore wind contracts due to lower upfront cost and faster permitting. Offshore wind has traditionally been perceived as slower to deliver and less tailored to the flexible procurement cycles of digital infrastructure players.

However, the scale of East Anglia Three and its predictable timeline—slated to begin operations by late 2026—makes it more compatible with hyperscaler expansion windows. For Amazon, this marks a shift toward long-term planning, where power procurement and infrastructure growth are integrated into a unified, region-specific strategy.

Energy market analysts believe this approach could spur a wave of offshore wind PPAs in the UK and northern Europe, especially as the EU tightens reporting requirements on Scope 2 emissions and 24/7 carbon-free electricity commitments gain traction. Amazon’s visibility in the PPA space also puts competitive pressure on peers to seek similarly robust and bankable clean energy deals, which may favor developers with large offshore pipelines and proven financial structuring.

With hyperscalers accounting for a growing share of global electricity demand, their clean power procurement patterns increasingly influence how renewables are financed, scaled, and delivered across markets.

What could Amazon’s East Anglia Three partnership mean for future renewable procurement in Europe’s cloud and AI sectors?

Amazon’s investment in East Anglia Three sets a new baseline for corporate PPAs in offshore wind—and could shape how digital infrastructure developers engage with clean energy providers in the coming years. As artificial intelligence, edge computing, and immersive technologies expand data center footprints across Europe, energy predictability and regional compliance will become core procurement drivers.

Looking ahead, similar PPAs may emerge in Germany, Denmark, or the Netherlands, where grid interconnection and offshore wind auction frameworks are aligning with corporate demand signals. For Amazon, this deal may also strengthen its standing with regulators and local governments who increasingly scrutinize the environmental impact of hyperscale buildouts.

Whether East Anglia Three becomes the first of several large offshore deals in Amazon’s European playbook remains to be seen—but it is already setting a precedent for how technology and clean energy can scale together.