BP Abandons Teesside Hydrogen Ambition After Data Center Land Clash December 1, 2025 In a significant development highlighting the intensifying competition for strategic industrial land, BP Plc has formally withdrawn its plans to build a major low-carbon hydrogen production facility in Teesside, northeast England. The decision underscores the growing tension between traditional energy transition projects and the infrastructure demands of the digital economy. The British energy giant confirmed the cancellation in a letter to the UK regulator, stating that the two proposed developments had become “incompatible.” This incompatibility arose after local planning authorities granted permission for a large-scale data center to be constructed on the same site earmarked for BP's hydrogen plant. While BP also cited deteriorating market demand for hydrogen as a contributing factor, the direct land-use conflict with the data center proposal was the primary catalyst for terminating the project. Despite this setback for its hydrogen ambitions, BP emphasized its continued commitment to other elements of its Teesside strategy. The company stated it still expects to proceed with a separate gas-fired power station equipped with carbon capture technology at the location, alongside a planned regional carbon transportation and storage scheme. The cancellation of the Teesside plant represents a notable recalibration for BP's energy transition portfolio in the region. For the data center industry, the outcome signals its powerful draw on resources, including land and power, often placing it in direct competition with other capital-intensive industrial projects. Such conflicts are likely to become more frequent as demand for computing capacity and clean energy infrastructure accelerates simultaneously. Source: bloomberg
BP Scraps Major UK Hydrogen Plant Project Following Land Conflict with Data Center Proposal
