Plan for controversial Sydney data centre scrapped after push-back

Plans for a large-scale data centre slated for development adjacent to residential properties in a Sydney suburb have been terminated after intense resistance from campaigners.

The initiative, driven by Goodman Group – Australia’s most prominent property development firm – involved constructing Project Mars, a 90‑megawatt facility valued at A$1.2 billion in the Lane Cove area.

The company formally rescinded its application in writing to the local planning authority, citing compelling objections raised by nearby residents and advocacy groups.

The conflict illustrates a widespread national tension over the expansion of major computational infrastructure.

Driven by the proliferation of generative artificial intelligence, demand for data centres has skyrocketed worldwide. With its plentiful clean‑energy resources, natural gas reserves, and available land, Australia has positioned itself as a key global hub for such buildings.

Yet, while federal and state governments champion incentives to attract foreign AI investment, local communities often oppose these projects due to strain on water supplies, energy demands, and social disruption.

For Project Mars, the proposed project within the Lane Cove neighbourhood was designated approximately fifteen metres from the closest residence, generating 374 public consultations before only nine residents expressed support.

Local coverage in In the Cove reported this represent the largest consultation record of any data‑centre application in the region.

In a communication to the New South Wales Department of Planning, Goodman Group explained that it had undertaken rigorous technical studies, stakeholder outreach, and community dialogue since initiating the process in March 2025.

The group stressed that prevailing policy and legal frameworks for large data centres had substantially shifted, noting that it had “considered these reforms alongside local viewpoints” before deciding the venture would not proceed.

The termination of the project aligns with recent moves by the New South Wales government to introduce a fast‑track pathway for data‑centre approvals, enabling efficient 75‑day reviews contingent on meeting specific sustainability and funding benchmarks.

A local representative and MP for Lane Cove praised the outcome. Anthony Roberts characterized the decision as a “substantial achievement” for his constituents.

Mr. Roberts added that this result offers a definitive lesson to future data‑centre developers, advocating that any large installation be strategically sited and integrated with the local community from the earliest planning stages.

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