BP (BP) withdrew its application to the UK government for a hydrogen and carbon capture project in Teesside, Northeast England, after a local council awarded primary consent to develop a data center on the site.

"We have taken the decision not to progress the development of H2Teesside and have withdrawn our Development Consent Order application for the project," BP said Monday in a statement.

The company said it continues to advance other Teesside investments, including Net Zero Teesside Power and the Northern Endurance Partnership.

The decision clears the site for a planned artificial intelligence growth zone, where the UK government aims to build one of Europe's largest data centers, spanning 500,000 square meters, the Financial Times reported.

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