Australian firm drops US$842 million Sydney data centre plan after public fury

Australian industrial property developer Goodman Group has withdrawn its US$842 million plan to build a 24-hour data centre on Sydney's north shore. The company cited evolving federal and state policy, as well as community feedback, as reasons for abandoning the Project Mars development. Goodman stated that policy and regulation concerning large artificial intelligence data centres have changed significantly since planning commenced in March 2025. The decision to withdraw the application followed public opposition to the project.

Goodman Group has scrapped plans for its A$1.2 billion Project Mars data centre in Sydney's Lane Cove suburb. The decision follows significant opposition from local residents and campaigners, with 374 submissions against the proposal during consultation, compared to just nine in support. The property giant cited changes to the "policy and regulatory environment" as the reason for withdrawing its application. The project, intended to be a 90-megawatt facility located approximately 20 metres from the nearest home, highlights a broader debate in Australia regarding the construction of data centres. While the government seeks investment in the sector, concerns persist over their demands on water and energy resources and their impact on local communities.

Goodman Group has withdrawn its $1.2 billion "Project Mars" datacentre development application in Lane Cove, Sydney. The developer cited "emerging" state and federal regulations as the reason for pulling the plug, stating the policy and regulatory environment for large-scale datacentres has evolved significantly. This decision follows recent government initiatives to fast-track datacentre applications and address community concerns regarding their location, energy, and water usage. The Lane Cove proposal had faced strong opposition from local residents concerned about its proximity to schools, event spaces, and green areas, as well as the clustering of datacentres in the vicinity. Local community representatives expressed relief at the withdrawal, highlighting a perceived regulatory gap.