In brief
In a watershed moment for Australia’s data‑centre industry, Goodman Group cancelled its flagship Project Mars, a 90‑MW facility slated for Lane Cove. The decision followed a record 374 community submissions – only nine in support – and intense residents’ protests, forcing the developer to withdraw. The move highlights escalating tensions between the booming AI sector’s energy demands and local concerns over water supply, power usage, and environmental impacts. While the NSW government’s new fast‑track programme may speed future approvals, this case signals that community approval remains a decisive factor.
Goodman Group withdraws $1.2bn data‑centre plan after record opposition in Lane Cove
Goodman Group, Australia’s largest property developer, announced on Thursday its withdrawal of the Project Mars data‑centre proposal, a 90‑MW facility that would have occupied land just 20 metres from residential homes in Lane Cove, Sydney’s north‑western suburb.
The company confirmed the decision in a letter to the New South Wales Department of Planning, citing extensive technical investigations, stakeholder engagement and evolving policy requirements that made the site unsuitable in light of community views.
In the public consultation, 374 submissions were lodged – the highest ever for any data‑centre application – and merely nine were supportive. Local residents, organised through the Lane Cove Responsible Planning Group, carried signs outside homes demanding the termination of the project; an image of one placard – “No Goodman Data Centre” – captures the intensity of the protest.
The withdrawal comes on the back of a recent NSW government announcement of a fast‑track assessment programme that will allow data‑centres to be approved within 75 days if they meet stringent water and energy supply standards. SAP representative Anthony Roberts welcomed the development as a “common‑sense win” for the community and a warning to other developers to secure suitable sites before proposal submission.
This episode highlights the widening debate across Australia about the role of data‑centres in a low‑carbon future. While the country’s abundant clean energy and vast land make it attractive for AI infrastructure, concerns over the sector’s heavy water demands, energy consumption and local disruption are reshaping how projects are evaluated.
Related reading: AI data centres are booming in Australia – but at what cost?
