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Data Center News > Blog > Global Market > Council backs AI data centre plan despite BP’s hydrogen bid
Global Market

Council backs AI data centre plan despite BP’s hydrogen bid

Last updated: August 5, 2025 5:07 pm
Published August 5, 2025
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Council backs AI data centre plan despite BP’s hydrogen bid
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A battle is brewing over 115 acres of the Teesworks regeneration website in Redcar after native councillors accredited plans for an AI information centre on the very floor that BP hopes to make use of for its H2Teesside blue-hydrogen plant. 

BP is presently looking for a improvement consent order (DCO) from the UK Authorities for the H2Teesside scheme, which is required for Nationally Important Infrastructure Initiatives (NSIP). H2Teesside entails a plant that might break up pure gasoline into hydrogen and captured CO2, creating one of many UK’s first large-scale blue-hydrogen hubs – and a possible anchor load for the area’s rising carbon-capture community.

Nonetheless, whereas BP waits for consent, with the Authorities set to determine by August 28, the landowner has gone to the native council with its personal concept for the location – an AI information centre. 

South Tees Group (STG), which is a private-public three way partnership that owns the Teesworks regeneration website, managed to safe define planning approval for an AI information centre at a gathering of Redcar & Cleveland Borough Council on Friday. That now places the 2 competing plans on a collision course as to who in the end will get to construct on the location. 

What occurs subsequent on the Teeswork website?

Whilst you might imagine that given each the landowner and native council are backing the AI information centre that might be the tip of the struggle for BP – that couldn’t be farther from the reality. That’s as a result of if BP manages to safe the DCO from the UK Authorities it’ll have an ace up its sleeve – the power to compulsorily buy the land it wants. 

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For BP’s half, it believes that the H2Teeside plan is critical and should go forward, noting that it’s of “nationwide significance,” as it might be a ”vital contribution” in the direction of the Authorities’s 10 GW hydrogen-production goal for 2030, supplying greater than 10% of the quota. It provides: “A knowledge centre wouldn’t ship comparable ranges of public profit.”

STG counters this by noting that an AI information centre would even be of “important nationwide significance,” and that it was already in superior discussions with a possible occupier for the location. 

That places the UK Authorities in a tough place – whereas it has set a goal to ship as much as 10 GW of low carbon hydrogen manufacturing capability by 2030, it has additionally been espousing the advantages of AI and information centres extra usually, formally designating them Essential Nationwide Infrastructure final yr.  

BP insists it has sought a place of ‘co-existence’ with STG and stays open to an settlement. In a statement to the BBC, a spokesperson famous, “[We remain] keen to proceed these discussions on proposals that might allow each developments to co-exist.”

Teesworks is much less satisfied, noting that its general precedence is job creation, long-term financial development, and producing constructive outcomes for the local people. It believes that its plans for an AI information centre on the location are finest positioned to ship that. 

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TAGGED: Backs, Bid, BPs, centre, Council, data, Hydrogen, Plan
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