Renewables have secured another significant win as Amazon has signed contracts to purchase 476 megawatts of wind and solar power on the Iberian Peninsula.

The power purchase agreements with multinational utility Iberdrola are expected to support Amazon’s plans to build new data centers in the region. In May last year, the company announced that it would invest $17 billion in infrastructure projects, including data centers, in Spain.

Amazon’s power bill has been increasing rapidly as it expands its data centers to meet the growing demand for AI and cloud services.

One of the projects Amazon is investing in is the Tâmega wind farm, which is being built alongside a massive hydroelectric dam system in Portugal. The complex consists of three dams, including an 880-megawatt pumped-storage dam.

Pumped-storage facilities have two reservoirs, one higher in elevation, one lower. When power is needed, water is released from the upper reservoir to spin turbines. When there’s excess power, massive pumps shift water from the lower reservoir to the upper one. Pumped storage is, in effect, a massive battery.

The 274-megawatts of wind turbines being installed at Tâmega will feed power to the grid through the hydro complex’s existing connection, and when there’s excess, it can be used to pump water to the upper reservoir. Such hybrid installations ensure power can be fed to the grid consistently from otherwise intermittent renewable resources like wind and solar.

Amazon is also purchasing a portion of the power from more typical wind and solar plants in northwestern Spain. Last year, the company was the largest buyer of renewable power.

Tech companies have been rapidly investing in renewable power at a consistent pace, driven in part by how quickly and inexpensively wind, solar, and batteries can be installed. Last month, Meta signed two large deals for solar power, and Microsoft and Google previously announced that they were each backing multi-billion dollar renewable investments.