Iberdrola is to supply Nike with 40MW of electricity from the 111MW Cavar wind complex in Spain under a new power purchase agreement.
The deal is the third PPA between the two companies and the first in Europe, bringing the total power to be supplied to over 200MW.
Iberdrola said construction of the Cavar complex will start soon and will be completed next year near Navarra in the north of the country.
The agreement means Nike will be operating on 100% renewable energy across Europe by 2020.
The previous PPAs between the companies have been in North America with Iberdrola subsidiary Avangrid Renewables for 100MW of power from the Karankawa wind farm in Texas and 69MW from the Leaning Juniper and Juniper Canyon wind projects in Oregon.
This capacity will enable Nike to source 100% renewable energy across their owned or operated facilities in North America.
Nike chief sustainability officer Noel Kinder said: “All athletes need fresh air and clean water to thrive.
“Delivering on our sustainability commitments, like working towards 100% renewable energy across our owned and operated facilities worldwide, is just one of the ways we protect the future of sport.”
Iberdrola director of renewables Xabier Viteri said: “Large businesses with a focus on sustainability are showing that they can be a positive force in tackling climate change.
“More and more we are seeing companies set themselves tough carbon reduction goals, and Nike is showing leadership in taking action to deliver on those goals.
“The additional renewable energy that we are building to secure PPA agreements not only directly benefits the sustainable partners we are working with, it also benefits wider communities by increasing the amount of emission-free electricity being generated.
“There is a strong market in Europe for renewable PPA deals, and we anticipate securing further agreements in a number of countries in the months ahead.”