Sydney Data‑Centre Plan Pulled After Fierce Community Pushback

Mon Sep 28 2026 15:30:43 GMT+0000 (Coordinated Universal Time)

A $1.2 billion Sydney data‑centre project has been scrapped after residents and activists raised heavy concerns.

Goodman Group abandoned Project Mars, a planned 90‑megawatt data centre near Lane Cove homes, after a wave of local protests and 374 public submissions—only nine supportive. The move underscores a growing push in Australia to weigh energy use and community impact against the boom in AI infrastructure. NSW’s new fast‑track data‑centre program still pushes developers to secure water and power commitments, but this case shows residents have a clear say. The decision is seen as a win for local voices and a signal that developers must find truly suitable sites. It also highlights ongoing debate over the environmental cost of data‑centre growth in an energy‑abundant nation.

Goodman Group, Australia's largest property firm, has withdrawn its proposal for a $1.2 billion data‑centre—Project Mars—that would have been built just 20 metres from homes in Lane Cove, Sydney.

City residents and local campaigners rallied against the project, submitting 374 comments in a public consultation—only nine in favour—making it the most engaged local data‑centre debate on record.

The auction, which was designed to tap into Australia’s abundance of clean energy, natural gas, and flat land, now faces scrutiny over its water and power demands and the disruption it could cause to nearby communities.

Goodman said that since beginning its planning process in March 2025 it had carried out extensive technical investigations and community consultations, and the shifting regulatory environment had influenced its decision to withdraw.

New South Wales is rolling out a 75‑day fast‑track review programme for data‑centres, but the programme comes with requirements for additional water and energy supply commitments.

Local MP Anthony Roberts hailed the withdrawal as “a huge win for the Lane Cove West community” and urged developers to prioritise suitable locations before submitting proposals.

While data‑centres have a role in supporting AI and cloud services, this cancellation highlights the need for balanced planning that protects local interests and the environment.