Amazon signs first solar-plus-storage PPAs in Australia to power AI expansion

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Eight of the nine projects include or will include an element of co-located battery energy storage. Image: Amazon.

Tech giant Amazon has announced nine new renewable energy power purchase agreements (PPAs) in Australia totalling 430MW, with eight projects featuring solar generation co-located with battery energy storage systems (BESS).

This marks the company’s largest single-year investment in the country and will help spearhead the expansion of its data centre AI. This also represents the first solar-plus-storage PPAs Amazon has signed in Australia and the first outside the US.

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Amazon disclosed that the portfolio comprises one wind farm, three utility-scale solar-plus-storage sites, four distributed solar-plus-storage projects, and a new battery energy storage installation to be added to the Mokoan solar PV power plant.

The projects span New South Wales and Victoria, with developers including OX2, X-ELIO, Anza, TagEnergy and European Energy. According to BloombergNEF data, Amazon was the largest corporate purchaser of carbon-free energy in Australia for 2025 and remains among the leading purchasers globally.

The investment directly supports Amazon’s AU$20 billion (US$14.34 billion) commitment to expand data centre infrastructure across Australia by 2029, announced alongside Prime Minister Anthony Albanese in June 2025.

That expansion aims to strengthen Australia’s cloud computing and AI capabilities, with the renewable energy deals providing the carbon-free power needed to meet both operational demands and Amazon’s goal of reaching net zero carbon across its operations by 2040 under The Climate Pledge.

Since 2020, Amazon has invested an estimated AU$2.8 billion in renewable energy projects across Australia, with the 20 projects now contracted.

Hybrid projects demonstrate land rehabilitation and agricultural co-use

The nine projects include the Golden Plains 2 wind farm developed by TagEnergy in Victoria, alongside solar-plus-storage sites at Forest Glen (X-ELIO), Stanbridge (Anza) and Muswellbrook (OX2) in New South Wales.

In Victoria, Anza is developing four distributed solar-plus-storage projects at Laceby, Indigo, Barnawartha, and Mooroopna, while European Energy is adding battery storage to the 58MW Mokoan Solar Park, which became operational earlier and was part of Amazon’s June 2025 announcement covering three utility-scale solar projects totalling 333MW of generation capacity.

That earlier agreement with European Energy also included the 150MW Winton North Solar Park in Victoria and the 125MW Bullyard Solar Park in Queensland, both in pre-construction procurement phases.

Jens-Peter Zink, deputy CEO of European Energy, indicated at the time that the company’s Australian operations were “just ramping up,” suggesting further expansion ahead.

Amazon’s approach mirrors strategies employed by other hyperscale operators in Australia, including Microsoft’s 15-year power purchase agreement with FRV Australia for a 300MW solar plant in New South Wales to power the company’s data centres in that state.

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