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PoliticsSydney, New South Wales, Australia

Sydney Data‑Centre Plan Withdrawn After Local Outcry

Owner Goodman Group pulls proposed 90‑MW data‑centre from Lane Cove after residents and activists block it with record‑setting submissions.

Source: bbc.co.uk1 min read
Sydney Data‑Centre Plan Withdrawn After Local Outcry
Image via bbc.co.uk

In brief

Goodman Group abandoned its planned 90‑MW Project Mars data‑centre in Sydney’s Lane Cove following an overwhelming local protest, with 374 submissions—just nine in support—showing widespread opposition. The 1.2 billion‑Australian‑dollar site would have been built only 20 meters from a house, sparking concerns over water, energy and community impact. The move comes after the NSW government introduced a fast‑track scheme for data‑centres, but the group cited changing regulatory conditions and community views for withdrawal. This outcome underscores growing tension in Australia between AI‑driven infrastructure growth and local environmental and social resilience.

Goodman Group has scrapped plans to build a 90‑megawatt data‑centre in Sydney’s Lane Cove after local residents and campaigners filed 374 submissions in opposition, with only nine in support.

The 1.2 billion‑Australian‑dollar Project Mars, which would have stood just 20 metres from a house, was removed from the planning agenda by the company’s own letter to the local authority.

Australia’s proliferation of AI has spurred a surge in demand for data‑centres, and the country has become a global destination thanks to its abundant clean energy, natural gas and land. However, the government’s push for such facilities faces stiff resistance because of the huge water and energy demands, and the disruptions they cause to nearby communities.

Goodman Group said that since beginning the planning process in March 2025 it had carried out extensive technical investigations, stakeholder engagement and community consultation, and had “carefully considered these changes” along with local views before deciding to withdraw.

Meanwhile, the New South Wales government announced a fast‑track programme for data‑centres that would allow them to be assessed within 75 days if they meet standards and fund additional water and energy supplies.

Anthony Roberts, the NSW parliamentary representative for Lane Cove, described the withdrawal as “a huge win for the Lane Cove West community” and called it a “common‑sense win” that sends a clear message to developers to find suitable locations before submitting proposals.

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