Goodman withdraws A$1.2 billion Sydney data centre application following heavy community opposition.

Goodman Group has withdrawn its A$1.2 billion application to build Project Mars, a 90-megawatt data centre in Sydney’s Lane Cove, after sustained opposition from residents and amid changes to state and federal data-centre policies. The proposed facility would have stood roughly 20 metres from nearby homes and near a public school, prompting concerns about its local impacts and the broader demands data centres place on energy and water supplies. The dispute reflects a wider tension in Australia between attracting investment in AI infrastructure and responding to community concerns. New South Wales has introduced a fast-track assessment framework with conditions for data-centre proposals, while federal rules are also being developed.
The proposal received 374 submissions during consultation, with only nine supporting it; a local news site reported this was the highest number ever recorded for a data-centre application.
The proposal became an issue at the first hearing of a federal Senate inquiry into AI and data-centre expansion. Goodman development head Ben McGilp faced repeated pressure from Liberal senator Sarah Henderson to withdraw the application.
NSW’s fast-track framework aims to assess qualifying data-centre applications within 75 days. Its stated principles include high standards for noise and air pollution, no net cost to consumers and communities, and funding extra water and energy supply.
The facility was planned as a three-storey development, about 160 metres from Lane Cove West Public School; it would have involved converting an existing warehouse.
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