Sydney residents beat data‑centre boom: Project Mars canceled after community backlash

Mon Sep 28 2026 20:12:25 GMT+0000 (Coordinated Universal Time)

A planned 90‑megawatt data centre near Lane Cove homes was scrapped after heavy local opposition, a win for residents amid Australia’s AI‑driven data‑centre surge.

Goodman Group withdrew its A$1.2bn Project Mars data‑centre plan after residents in Lane Cove flooded the public consultation with 374 submissions, most opposing the development. The 90‑megawatt, 20‑metre‑from‑homes site would have stretched the region’s water and power supplies. Australian policy now fast‑tracks approvals with strict water and energy funding requirements, but the Lane Cove case shows local community push can still halt megaprojects. Sydney’s win highlights the clash between booming AI infrastructure demand and neighbourhood rights.

Sydney residents beat data‑centre boom: Project Mars canceled after community backlash

Goodman Group’s plan to build a massive 90‑megawatt data‑centre just 20 metres from homes in Lane Cove was pulled after residents flooded the public consultation with 374 submissions – only nine in favour.

At a cost of A$1.2 billion (about $841 million), Project Mars would have added a huge drain on the suburb’s water and power supplies. The move follows growing concern across Australia about the infrastructural strain posed by megascale data‑centres that power generative AI.

Goodman said the company had been under the external “policy and regulatory environment” of data‑centre approvals since March 2025. With the New South Wales government launching a fast‑track 75‑day approval scheme that requires developers to fund extra water and energy, the company now decided it could not go ahead.

“This is a huge win for the Lane Cove West community,” NSW MP Anthony Roberts tweeted. “It sends a clear message to other data‑centre developers that suitable locations must be found before proposals are put forward.”

The cancellation shows that even in a country attracting AI investment, local voices can override megaproject plans. It also underlines the need for developers to team up early with communities to avoid costly delays.