**Plan for Controversial Sydney Data Centre Scrapped After Community Opposition**
In a significant development, plans for a data centre in the Lane Cove suburb of Sydney have been officially withdrawn by Goodman Group, Australia's largest property company. The proposed facility, known as Project Mars, was set to be a A$1.2 billion (approximately US$841 million) investment and would have operated at a capacity of 90 megawatts. However, the project faced intense backlash from local residents and campaigners, leading to its cancellation.
Goodman Group confirmed the decision in a letter addressed to the New South Wales Department of Planning, citing extensive community consultations and stakeholder engagements since the planning process began in March 2025. The company noted that the regulatory environment for large-scale data centre developments has evolved significantly, prompting them to reconsider their proposal in light of community feedback.
The proposed data centre was to be located a mere 20 metres from the nearest residential property, raising concerns among local residents about potential disruptions and the environmental impact of such a facility. During the public consultation phase, the project garnered a remarkable 374 submissions, with only nine in support. This response marks the highest number of submissions ever received for a data centre application in the area, according to local news outlet In the Cove.
The opposition to Project Mars reflects a broader debate in Australia regarding the increasing demand for data centres, particularly in the context of the rising popularity of generative artificial intelligence. While the Australian government is eager to attract investment from global AI companies, there is growing concern over the substantial energy and water requirements that data centres impose on local communities.
In response to the community's concerns, Anthony Roberts, a member of the New South Wales Legislative Assembly representing Lane Cove, described the decision to scrap the project as a "huge win" for the Lane Cove West community. He emphasized the importance of ensuring that large-scale developments are appropriately located and planned with the needs of surrounding communities in mind.
Roberts' comments were echoed by local campaigners who had been vocal in their opposition to the data centre. Signs protesting the development were prominently displayed in the suburb, illustrating the community's unified stance against the project. The decision to withdraw the application is seen as a precedent for future data centre proposals, signaling to developers the necessity of engaging with local residents before advancing their plans.
This decision comes shortly after the New South Wales government announced a fast-track programme for data centre assessments, aiming to streamline the approval process to within 75 days for projects that meet specific criteria. However, the backlash against Project Mars highlights the complexities and challenges involved in balancing economic development with community interests and environmental sustainability.
As the demand for data centres continues to grow in Australia, the situation in Lane Cove serves as a reminder of the importance of community engagement and the need for careful consideration of the potential impacts of such developments. The withdrawal of Project Mars may influence how future data centre projects are approached, encouraging developers to prioritize community consultation and environmental considerations in their planning processes.