Plan for Controversial Sydney Data Centre Scrapped After Push‑back

A sign reading ‘No Goodman Data Centre’ is displayed outside a home in the suburb of Lane Cove
A sign reading ‘No Goodman Data Centre’ is displayed outside a home in the suburb of Lane Cove, Sydney, August 25, 2026 Reuters

Plans for a data centre that would have been built metres from people’s homes in a Sydney suburb have been scrapped following intense push‑back by campaigners.

The data centre was being developed by Goodman Group, Australia’s biggest property company, and would have seen it construct a A$1.2bn (£630m; $841m), 90‑megawatt facility known as Project Mars in the Lane Cove area.

The company confirmed it was withdrawing its application in a letter to the local planning authority, citing significant changes to policy and the views of the local community.

It follows a concerted opposition against the Centre by local residents and campaigners. The dispute captures a wider disagreement in Australia over the role of data centres.

With the mainstreaming of generative AI in recent years, there has been a huge swell in demand for data centres, and Australia, with its abundance of clean energy, natural gas reserves and land, has become a global destination for their construction.

However, while the government has been keen to attract investment from global AI companies, there has also been stiff opposition due to the huge demands the centres place on water and energy supplies, and the disruption they cause local communities.

The proposal for Project Mars, which would have been constructed about 20 metres from the nearest house in the suburb of Lane Cove, received 374 submissions during a consultation – with just nine in support of it.

In its letter to the New South Wales Department of Planning, Goodman Group said, “Since starting the planning process in March 2025, we have undertaken extensive technical investigations, stakeholder engagement and community consultation. During this time the policy and regulatory environment for large‑scale data centre development has evolved significantly.”

The decision comes after the NSW government announced a fast‑track programme for data centres. The programme would allow them to be assessed within 75 days, provided they meet requirements around certain standards and fund the additional supply of water and energy.

Anthony Roberts, a member of the New South Wales Legislative Assembly representing Lane Cove, said the move was “a huge win for the Lane Cove West community” and a message to other developers to find suitable locations before putting proposals forward.