Due to the rapid integration of renewable energy sources, challenges related to intermittence and grid stability have emerged, prompting scientists to seek an efficient and sustainable storage system to address these issues. Among the existing storage solutions, green hydrogen has demonstrated its high capacity as an energy vector, making it a promising solution to significantly enhance the transition to a 100% renewable energy society. However, the production costs of green hydrogen remain high, necessitating a thorough investigation to identify optimal locations for its production, ensuring high capacity and cost-effectiveness. In this context, the present paper introduces a multi-scenario, water-based approach aimed specifically at identifying optimal locations for large-scale photovoltaic-powered hydrogen production units. To achieve this objective, we have developed an integrated framework that combines the Analytical Hierarchy Process method and the Geographic Information System tool. This framework takes into account four main criteria and ten sub-criteria, and it has been applied to the Eastern region of Morocco as a case study. Furthermore, a techno-economic comparison is conducted among the three scenarios, considering the amount of hydrogen produced and the Levelized Cost of Hydrogen. The analysis results reveal that the Eastern region of Morocco emerges as a target area for large-scale photovoltaic-powered hydrogen production units installations, where the sites ranked as “excellent” account for 18.1% of the total surface area under the first scenario. Moreover, the findings demonstrate that the first scenario represents the optimal choice for the Eastern region, offering the highest annual hydrogen production (1,875 tons) with the most advantageous cost of 3.690$/kg. The study's conclusions are of great significance for overseas investors and local policymakers, offering valuable insights into the region's opportunities for hydrogen industry development, given the rising global interest in green hydrogen market.