Plans for a 90‑megawatt data centre in Lane Cove, a Sydney suburb, have been scrapped after a wave of community opposition. The project, dubbed Project Mars and valued at A$1.2 billion, would have been built only about 20 metres from the nearest house, prompting a record‑high number of public submissions.

What happened?

The Goodman Group, Australia’s largest property company, announced in a letter to the New South Wales Department of Planning that it was withdrawing its application for the data centre. The company cited a shift in the policy and regulatory environment and, crucially, the "views of the local community" as reasons for the decision.

Community response

During the consultation process, 374 submissions were received, with only nine supporting the development. Local residents and campaigners expressed concerns about the centre’s proximity to homes, its water and energy demands, and the broader impact on neighbourhood livability. A sign protesting the project was even displayed outside a home in the suburb.

Broader context

Australia has become an attractive destination for data‑centre construction thanks to its clean‑energy resources, natural‑gas reserves, and abundant land. However, the rapid rise of generative AI has driven a surge in demand for such facilities, intensifying debates over their environmental footprint and community impact.

Policy backdrop

Just weeks before the withdrawal, the New South Wales government announced a fast‑track programme for data‑centre approvals, promising assessment within 75 days for projects that meet specific standards and fund additional water and energy supplies. Critics argue that speed‑up measures could sideline community concerns.

Political reaction

Anthony Roberts, the state member for Lane Cove, hailed the cancellation as "a huge win for the Lane Cove West community" and warned other developers to secure suitable locations before proposing large‑scale projects.

Implications

Project Mars serves as a case study of the delicate balance between technological expansion and the rights of local residents, a balance that Australian policymakers will continue to navigate in the coming years.