Plans for a data centre that would have been built only 20 metres from residents’ homes in Lane Cove have been scrapped after fierce community opposition.
Goodman Group, Australia’s largest property developer, had been preparing a A$1.2 billion (£630m; US$841m) 90‑megawatt facility known as Project Mars. The proposal was met with a storm of protests, culminating in 374 submissions to the local planning authority – just nine in support.
In a letter to the New South Wales Department of Planning, Goodman said it had carried out extensive technical investigations and community consultation since starting the process in March 2025. It also noted that the policy and regulatory environment for large‑scale data centres had evolved significantly, and that it would not proceed given the local community’s concerns.
The decision comes amid a broader debate over Australia’s rapid expansion of AI data infrastructure. The country’s abundant clean energy, natural gas reserves and available land have made it a sought‑after destination for such projects, but the high water and energy demands, along with local disruption, have sparked opposition.
Last month, the New South Wales government announced a fast‑track programme that would allow data centres to be assessed within 75 days, provided they meet certain standards and fund additional water and energy supplies. Western‑Australian state officials say the programme seeks to balance growth with sustainability, but critics argue it still neglects community impact.
Lane Cove MLA Anthony Roberts hailed the withdrawal as a “huge win for the Lane Cove West community” and a “common‑sense victory” that signals developers must engage communities before submitting proposals. He warned that large developments should be located and planned with the surrounding residents in mind.
Source: Reuters; image credit: Reuters.
