Avangrid, the US subsidiary of Spanish energy giant Iberdrola, is set to construct six new power projects, with a combined capacity of 800MW, to support the increasing energy demands of data centers across the United States. This development aligns with the ongoing expansion of the data center industry, which requires substantial energy resources to sustain operations.

Project Development and Timeline

The six power projects are in various stages of development, with some already under construction and others slated to begin construction in the coming months. Avangrid’s investment in these projects underscores the company’s commitment to strengthening energy infrastructure and ensuring reliable power supply for the nation’s growing technology sector.

‍Strategic Vision and CEO Insights

Avangrid’s CEO, Pedro Azagra, emphasized the company’s strong position in the US energy market, stating:

“With an extensive portfolio of energy projects spread across 24 states and a robust pipeline of over 25GW of projects, we are in the perfect position to provide secure American energy to the country’s largest technology companies and meet an expected surge in energy demand from data center growth.”

The company’s extensive footprint across the United States allows it to efficiently serve technology firms that require large-scale, reliable, and sustainable energy solutions.

Existing Data Center Energy Supply and Expansion Plans

Currently, Avangrid operates eight power projects dedicated to the data center sector, delivering a total capacity of 1.25GW. To accommodate rising energy needs, the company is actively pursuing new projects and partnerships to expand its renewable energy offerings.

As part of its expansion strategy, Avangrid has signed multiple Power Purchase Agreements (PPAs) with major data center operators in the US. These agreements facilitate long-term commitments to supply clean energy, reinforcing the company’s role in supporting tech-driven energy demands.

Key Renewable Energy Agreements

Avangrid has engaged in several significant PPAs with leading technology firms to bolster renewable energy adoption within the data center industry. Notable agreements include:

QTS & Meta (December 2023)‍

In partnership with Portland General Electric, Avangrid signed a PPA with QTS and Meta to supply 120MW of solar power from the Tower Solar project, currently under construction in Oregon. This project will provide power directly to a planned Meta data center and is projected to commence commercial operations in 2026.

Amazon PPA‍

Avangrid previously secured a long-term agreement with Amazon to supply renewable energy from its 98.4MW Leaning Juniper IIA wind farm in Oregon, reinforcing Amazon’s commitment to sustainable energy use.

Avangrid’s Renewable Energy Portfolio and National Presence

Avangrid continues to expand its renewable energy footprint across the country. The company boasts an installed capacity exceeding 10.5GW, spanning 24 states. Through its renewables division, Avangrid owns and operates over 75 energy generation facilities, collectively producing more than 9GW of energy.

‍Implications for the US Energy Landscape

The development of these new power projects is a strategic move to accommodate the evolving energy needs of the US technology sector. As data center operations continue to expand, the demand for reliable, clean energy sources is expected to rise significantly. Avangrid’s proactive approach ensures that the company remains at the forefront of providing sustainable energy solutions to the nation’s largest technology companies.

By leveraging its extensive pipeline of renewable projects and establishing strategic partnerships, Avangrid is well-positioned to meet the dynamic energy requirements of the digital economy while contributing to the broader transition toward renewable energy adoption in the United States.

Originally reported by Zachary Skidmore in DCD.