This comparative study examines the potential for green hydrogen production in Europe and the Middle East, leveraging 3MWp solar and wind power plants. Experimental weather data from 2022 inform the selection of two representative cities, namely Krakow, Poland (Europe), and Diyala, Iraq (Middle East). These cities are chosen as industrial–residential zones, representing the respective regions’ characteristics. The research optimizes an alkaline water electrolyzer capacity in juxtaposition with the aforementioned power plants to maximize the green hydrogen output. Economic and environmental factors integral to green hydrogen production are assessed to identify the region offering the most advantageous conditions. The analysis reveals that the Middle East holds superior potential for green hydrogen production compared to Europe, attributed to a higher prevalence of solar and wind resources, coupled with reduced land and labor costs. Hydrogen production costs in Europe are found to range between USD 9.88 and USD 14.31 per kilogram, in contrast to the Middle East, where costs span from USD 6.54 to USD 12.66 per kilogram. Consequently, the Middle East emerges as a more feasible region for green hydrogen production, with the potential to curtail emissions, enhance air quality, and bolster energy security. The research findings highlight the advantages of the Middle East industrial–residential zone ‘Diyala’ and Europe industrial–residential zone ‘Krakow’ in terms of their potential for green hydrogen production.