By Tom Quinn, DES Summit Producer
This year marks 125 years of the Iberdrola Group which today is an international leader in grids, storage and clean energy in dozens of countries. Following decades of growth the company is now one of the world’s largest energy providers, owning electricity networks and power stations around the globe, including approximately 45 gigawatts of renewable generation such as wind and solar farms.
Despite its long history, Iberdrola is not looking back. The group is at the forefront of modern technological development. Recently, Iberdrola announced that it is investing a total of €58bn in electrification infrastructure between 2025 and 2028, with 35% of its capital going to the UK, 30% to the US, 15% to the Iberian peninsula and 12% to Brazil.
AI at the Core of Iberdrola’s Energy Strategy
One of the primary areas in which Iberdrola is investing is artificial intelligence (AI), both on the business implementation and the power generation sides.
Iberdrola’s AI Centre of Excellence became operational in September 2022 as one of the main results of the AI for Sustainable Energy Transition project, also known as IA4TES. Led by Iberdrola throughout its three-year duration (2022-2024), the main objective of this project was to study solutions provided by different AI technologies in the electricity sector.
Located in Iberdrola’s Innovation and Training Campus, a vast complex with state-of-the-art facilities in San Agustín del Guadalix Madrid, the AI Centre of Excellence is made up of a consortium led by Iberdrola with the participation of different institutions including Minsait, Tecnalia, Universidad Complutense de Madrid, Universidad de Granada and Universidad de Salamanca.
Subsequently, in just a few years, the campus has become a hub of innovation and dialogue on digital transformation. Last year, in June 2025, Iberdrola hosted its 11th edition of the now renowned Digital Summit. The central theme of the event was especially timely – “AI Momentum” – which reflected both the rapid global advancement of AI and Iberdrola’s own acceleration in embedding AI technology across its business operations. Over the course of the summit, the company presented more than 150 concrete use cases of AI in action which includes, energy generation, electricity distribution, environmental protection, and customer service.
A number of industry experts and cross-sector leaders participated with presentations including: Esade, EY, Accenture, Ecoembes, Dyc, Caixabank, Enatic, Holcim, and OHLA.
“The emergence of generative AI has marked a turning point. Its ability to accelerate the development of solutions and transform processes led us to go a step further, to create an AI competence centre that concentrates talent, agile methodologies, and data governance in a single ecosystem.”
Sergio Merchán, Global CIO of Iberdrola Group
Referencing Iberdrola’s AI Centre of Excellence specifically, Merchán emphasises it has been designed following a centralized model, a single hub with common standards, but deeply connected to the business. “Each initiative starts with hybrid teams made up of experts from the centre, like data scientists, AI engineers, cloud architects, and profiles from the business area,” he notes. “This collaboration guarantees both technical excellence and strategic relevance.”
However, with significant AI investment and the potential it wields, Iberdrola is committed to ensuring that its use of the technology is ethical, transparent, and compliant with emerging regulations. In September 2024, Iberdrola formally joined the European Commission’s AI Pact, a voluntary initiative that promotes the responsible and ethical use of AI in accordance with the EU’s forthcoming AI Act. This aligns with Iberdrola’s long-standing efforts to adopt ethical standards even before legal mandates come into effect.
To support this commitment, Iberdrola developed and approved a corporate Artificial Intelligence Policy, which includes clear governance structures, model registration procedures, and mandatory risk assessments. This policy is designed to ensure that AI solutions align with both the company’s values and a common global ethical framework.
How is Iberdrola Group partnering in electrification development?
Iberdrola Group leads a number of recent deals in Europe powering digital transformation and AI-aligned development. Echelon Data Centres have entered into a strategic partnership to build and operate large-scale data centres in Spain. This has led to the creation of Echelon Iberdrola Digital Infra, with planned investments of more than €2bn, making it the largest joint venture in Europe between a power company and a data centre developer.
The first project to come out of this partnership will be Madrid Sur, a 160,000 m² complex that will have 144 MW for data processing and has already secured a 230 MW electrical connection. This project will generate around 1,500 direct and indirect jobs and its estimated demand is 1 TWh. It will also have a photovoltaic solar plant and additional renewable energy from Iberdrola España to guarantee all of its power needs.
Additionally, Iberdrola Group and Microsoft have recently announced a new partnership to deepen their work together on energy projects and AI. The partnership builds on the success of previous initiatives and includes the signing of two long-term power purchase agreements (PPAs) in Spain, the first that both companies have signed in Europe.
The agreement envisages expanding the use of Microsoft’s Azure computing and cloud platform, the deployment of Microsoft Copilot and security and regulatory compliance solutions to strengthen the Iberdrola Group’s digital capabilities and promote the use of AI throughout the Group.
The two new power purchase agreements (PPAs) in Spain, totalling 150 MW of contracted power, include purchasing electricity from the Iglesias wind farm (in Burgos) and the El Escudo wind farm (in Cantabria). These contracts enable Microsoft to advance its goal of operating with 100% renewable energy in Europe, in line with its global commitments.
How is AI implementation working for Iberdrola?
One of the most impactful areas of AI integration has been in clean energy generation, especially in the wind and solar sectors. AI systems are employed throughout the entire lifecycle of a renewable energy project — from the planning phase through to day-to-day operations.
“AI systems are employed throughout the entire lifecycle of a renewable energy project — from the planning phase through to day-to-day operations.”
During the project design stage, AI models analyse vast datasets to identify optimal locations for wind turbines or solar panels. This includes analysing weather patterns, geographical features, and energy demand forecasts to determine the most effective deployment strategies. Once operational, these installations use AI-powered algorithms to monitor performance and predict maintenance needs, identifying potential faults before they occur. This proactive maintenance helps reduce downtime, extend equipment life, and ensure maximum energy output.
Moreover, AI is used to predict hourly wind and solar energy production at an incredibly granular level — even down to the individual turbine or solar panel. These forecasts are essential for energy grid integration and market trading, improving grid reliability and maximizing the economic value of renewable resources.
- Environmental Protection
One particularly innovative use of AI is in environmental protection. Iberdrola has implemented AI systems that can detect the presence of birds within a five-kilometre radius of a wind farm. If a risk is identified, the system can automatically shut down specific turbines to prevent harm to wildlife, balancing renewable energy development with biodiversity conservation.
- Power Outage Mitigation
In the realm of electricity transmission and distribution, Iberdrola has deployed AI to deliver more responsive, resilient, and efficient grid operations. One standout innovation is an AI-based algorithm that estimates outage recovery times with high accuracy, providing real-time updates to customers during service disruptions. This improves customer communication and strengthens public trust.
“One standout innovation is an AI-based algorithm that estimates outage recovery times with high accuracy, providing real-time updates to customers during service disruptions.”
- Predictive Maintenance + Battery Support
AI is also used to evaluate the condition of the grid and plan preventive maintenance. By analysing over 100 variables and six years of historical data, the system can predict which transformers or grid segments are likely to require partial replacements in the near future. This allows Iberdrola’s technical teams to prioritize and schedule work more effectively, reducing costs and minimizing service interruptions. Another innovative use of AI involves the strategic placement of backup batteries to ensure grid stability during outages. Using simulations and predictive models, Iberdrola can identify areas where batteries will have the greatest impact on reliability and performance.
Satellite data and AI-powered image recognition technologies are also helping Iberdrola maintain the safety and efficiency of its grid infrastructure. These systems are used to measure vegetation growth near power lines, estimate trimming needs, and verify the effectiveness of maintenance work, all while minimizing the need for in-person inspections.
AI at The Digital Energy Strategies Summit
28-29 May 2026 | Madrid, Spain
As AI continues to move from pilot projects to enterprise-wide deployment across the energy sector, the Digital Energy Strategies Summit will provide a closed-door forum for senior leaders to examine what real implementation looks like in practice. From grid optimisation and predictive maintenance to responsible governance and large-scale infrastructure partnerships, the conversations will focus on scaling AI with measurable impact. Drawing on insights from organisations such as Iberdrola and other global energy operators, the Summit will explore how AI is reshaping electrification strategy, operational resilience and long-term investment decisions across complex, regulated energy systems.
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