The company said it started work on the first foundation for the turbines at the deep water site, which is about 20 miles northwest of the German island of Helgoland.
"Offshore wind is on the road to becoming a reliable and cost-effective source of electricity," Eckhardt Rummler, chief executive officer of E.ON's renewable energy division, said in a statement. "Amrumbank West will help take us significantly closer to this goal."
The company said it plans to spend at least $1.3 billion on construction.
E.ON said the Amrumbank West wind farm will cover more than 2.5 square miles in the North Sea. The 80 turbines planned for the facility will provide enough energy to meet the demands of 300,000 households once it enters into service in late 2015.
E.ON is the third-largest operator of offshore wind farms in the world.