ITM Power is taking premises at Junction 34 of the M1, where it says will have the largest electrolyser manufacturing capacity in the world, some 1GW per annum.
The energy storage company expects to occupy the building on Bessemer Park, Shepcote Lane, from March 2020.
It is a shock switch from £4m plans to relocate all operations to a large unit on Rotherham Road, Maltby. It went as far as submitting a planning application for change of use late last year.
Boss Graham Cooley said: “For a variety of reasons this was a better option for us. It is brilliant from a logistical point of view and we’re very excited about this fantastic development.”
The firm, which employs 200, will close its two sites on Atlas Way, Atlas, and on Sheffield Business Park.
ITM Power makes equipment that runs electricity through water to produce hydrogen gas, which can be stored in tanks, pumped into the domestic gas grid or used in hydrogen cars.
The need to expand was sparked by a growth in orders. At the end of May it said it had a record backlog of contracts, worth £45.1m, an increase since of £9.4m since February.
Chief executive Dr Graham Cooley, said: "The move to larger premises and the design of our new manufacturing and testing process has taken some time.
"I am delighted to be able to announce this key milestone in the project and I do so with confidence that ITM Power and its advisers have done a thorough job in selecting the right premises.
“The detailed planning that has taken place will pay dividends as we transition our activities to PLP Bessemer Park from the new year."
The firm, which is advertising eight jobs, also has offices in Australia, Germany, France, the USA and Canada.
Bessemer Park is a 50-acre plot that was used by Outokumpu to process stainless steel. It was snapped up by Peel Logistics.