Goodman Group has scrapped its proposed A$1.2bn data‑centre in Lane Cove, after residents and environmental groups flooded the council with 374 submissions, just nine in support.
Project Mars was planned to occupy a 90‑megawatt site in a residential suburb of Sydney, with the nearest house only about 20 metres away. Community backlash included concerns over the inevitable water draw, the strain on local electricity grids and the visual impact on the neighbourhood.
The company’s letter to the New South Wales Department of Planning cited a rapidly shifting policy environment and a careful review of community views as reasons for pulling the application. It added that the fast‑track scheme announced the previous month—allowing data‑centres to be assessed within 75 days—does not override local opposition.
Transporting data in the age of generative AI has turned Australia into a magnet for large‑scale facilities, thanks to its abundant clean power and vast land. Yet, the push‑back from Lane Cove shows the limits of this growth model when it conflicts with community welfare.
“This is a common‑sense win for the Lane Cove West community,” said NSW Legislative Assembly member Anthony Roberts. “The victory sends a clear message to other developers: find suitable sites before submitting proposals.
Data centres have an important role, but large developments must be appropriately located and planned with surrounding communities in mind.”
Read more on the broader impact of AI data centres across Australia: AI data centres are booming in Australia – but at what cost?
