Plan for controversial Sydney data centre scrapped after push‑back

Goodman Group’s Project Mars, a 90‑megawatt facility slated to sit just 20 metres from homes in Lane Cove, has been cancelled following a wave of community opposition.

The company launched a Q1 2026 bid for an A$1.2 billion data‑centre that would have tapped massive water and power supplies while clashing with local residents. Over 374 written submissions were received, with only nine in support.

Goodman cited changing policy, stakeholder feedback and community sentiment as reasons for withdrawal. The decision follows the New South Wales government’s new fast‑track scheme that will speed approvals but requires developers to fund extra supply of water and energy.

Lane Cove MP Anthony Roberts hailed the cancellation as a “common‑sense win” for the neighbourhood and a warning to other developers.

The incident highlights the tension across Australia, where a surge in AI demand has turned the country into a magnet for large data‑centre projects that strain local resources.