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BusinessSydney, New South Wales, Australia

Sydney data‑centre plan abandoned after massive community push‑back

Goodman Group pulls its 1.2 billion‑AUD Project Mars data‑centre after 374 submissions, just nine in favour. 20 metres from homes, the proposal is now scrapped.

Source: bbc.co.uk1 min read
Sydney data‑centre plan abandoned after massive community push‑back
Image via bbc.co.uk

In brief

Goodman Group withdrew its plan for the A$1.2 billion Project Mars data‑centre in Lane Cove, Sydney, after a record 374 community submissions – only nine supporting the site. The 90‑megawatt facility would have been just 20 metres from the nearest house. The decision follows a broader backlash over data‑centre water and energy demands, and the NSW government’s new fast‑track scheme that now requires concrete evidence of environmental supply. Local MP Anthony Roberts hailed the move as a win for community planning. The case highlights the growing tension between Australia’s AI boom and local residents’ rights.

Goodman Group has scrapped its proposal for Project Mars, a 90‑megawatt data‑centre estimated to cost A$1.2 billion, after an unprecedented wave of community opposition in Lane Cove, a Sydney suburb.

The proposed facility would have been built a mere 20 metres from the nearest house, and the local planning office received 374 submissions during public consultation – only nine in support.

Goodman said it had carried out extensive technical, stakeholder and community engagement since March 2025, and that shifting policy and regulatory conditions had prompted a re‑evaluation of the project’s viability.

The decision comes after the New South Wales government introduced a fast‑track scheme that could assess data‑centre applications within 75 days, provided they meet minimum standards and fund additional water and energy supply.

Local MP Anthony Roberts praised the outcome, calling it a "huge win for the Lane Cove West community" and a "clear message to other developers to find suitable sites before proposing projects."

The incident reflects a wider national debate. Australia’s abundance of clean energy and natural gas has attracted many data‑centre operators, but the sector’s rapid growth raises serious concerns over local water and power usage, and community disruption.

For more on the broader implications of the AI data‑centre boom in Australia, see AI data centres are booming in Australia – but at what cost?

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