The Teesworks brownfield development site has been at the centre of many headlines in recent years following claim and counter-claim in a bitter row over land ownership arrangements.

But now it is at the heart of an even bigger and more consequential debate going to the heart of the country’s future economic and environmental choices.

There are two opposing proposals for developments on the site; a low-carbon hydrogen facility backed by BP and a huge AI data centre scheme said to be interesting the likes of Google as a major investment opportunity.

A crunch point is imminent; Energy Secretary Ed Miliband has to decide by the end of this month whether to grant a development consent order for the hydrogen plan.

Prime Minister Sir Keir Starmer (right) and Energy Security and Net Zero Secretary Ed Miliband during a visit to Staffordshire. Picture: Chris Furlong/PA Wire

placeholder image — Prime Minister Sir Keir Starmer (right) and Energy Security and Net Zero Secretary Ed Miliband during a visit to Staffordshire. Picture: Chris Furlong/PA Wire

But supporters of the data centre scheme argue that doing so will prevent their project, which they see as having the far greater economic potential, from being able to happen.

The situation is reported to be causing divisions in Government, with published letters about the matter in recent months giving some insight into the differing opinions.

Business Secretary Peter Kyle has been a backer of plans to make Teesworks a “world-class AI hub”, while Energy Minister Michael Shanks has reiterated the desire to make the UK "a clean energy superpower”.

While Mr Shanks says the Government is committed to both rolling out AI Growth Zones and expanding decarbonisation projects, the reality in this case is a choice between one option or the other.

There are obviously many nuances, but in simple terms the Government needs to decide whether net zero or economic growth has the greater importance. There will be many similarly tough calls ahead.