Plan for controversial Sydney data centre scrapped after push-back

What the report says

Goodman Group has abandoned plans for Project Mars, a proposed A$1.2bn data centre in Sydney’s Lane Cove area, after strong opposition from local residents and campaigners. The BBC reports the facility would have been a 90-megawatt site built about 20 metres from the nearest home, prompting concerns about its impact on the neighbourhood.

According to the company’s letter to New South Wales planning authorities, Goodman said it had carried out technical studies, stakeholder engagement and community consultation since beginning the planning process in March 2025. It said the policy and regulatory setting for large-scale data centres had changed significantly, and that it had taken those changes and local views into account before deciding not to proceed.

The proposal drew 374 submissions during consultation, with only nine supporting it, and became a focal point in a broader Australian debate over data centres. As AI use grows, such facilities are attracting investment because of Australia’s energy resources and available land, but they also face criticism over demands on water and electricity and their proximity to homes.

The decision comes as New South Wales prepares a faster assessment route for data centres that meet certain standards and help provide extra water and energy supply. Local representative Anthony Roberts described the withdrawal as a win for the Lane Cove West community.