Sydney Data Centre Project Withdrawn After Community Opposition
Goodman Group, Australia’s largest property developer, has decided to scrap its 1.2 billion‑Australian‑dollar Project Mars data centre that would have been built within 20 metres of houses in Lane Cove, a Sydney suburb.
The ambitious 90‑megawatt facility was slated to support the growing demand for generative AI services across the country. Its proposed site would have consumed significant water and energy, raising alarm among local residents and campaigners.
During an open consultation period, the application attracted 374 submissions, yet only nine were in favour. The volume of community feedback is the highest ever recorded for a data‑centre proposal, according to local outlet In the Cove.
Goodman’s decision follows a government announcement last month giving developers a fast‑track approval window of 75 days, provided they meet stringent water and power requirements. The company noted that changes in the regulatory landscape and strong local opposition prompted the withdrawal.
“This is a huge win for the Lane Cove West community,” said Anthony Roberts, the local member of the Legislative Assembly. “It sends a clear message to developers that plans must be placed in suitable locations before being put forward.”
The situation highlights a growing national debate over the rapid expansion of AI data centres and their environmental and social footprints. For a deeper look at the balance between innovation and impact, read AI data centres are booming in Australia – but at what cost?
