In brief
Sydney neighbourhoods rallied to halt the planned Project Mars data centre that would have been located just 20 metres from local houses. Goodman Group dropped the proposal after securing 374 submissions, the largest ever for a data‑centre application, amid concerns over water use, energy grid strain and community disruption. The decision comes as New South Wales introduces a fast‑track approval scheme for data centres that meets strict environmental and infrastructure standards. Industry sees the move as a lesson that large digital infrastructures must balance national competitiveness with local sustainability. The case underscores the critical role of citizen voices in shaping the future of digital and climate policy.
Sydney residents successfully halted the construction of a A$1.2bn data centre that would have been situated only metres from their homes. The cancelled project, named Project Mars, was due to be built by Goodman Group in the Lane Cove area.
Goodman confirmed the withdrawal after a deluge of community submissions – 374 in total, including only nine supportive – the highest number ever received for a data‑centre application. Residents and campaigners cited severe impacts on local water supplies, increased energy demand and street safety concerns.
The case highlights Australia’s growing role as a hub for generative‑AI‑driven data infrastructure, driven by the country’s abundant clean energy, natural gas reserves and spacious land. Yet the wave of large facilities has sparked pushback over their environmental footprints and community disruption.
Goodman cited changes in policy and regulatory frameworks as it re‑examined the proposal. It said it had undertaken extensive technical and community engagement since March 2025, and ultimately decided not to proceed in the face of growing concern.
The decision follows a new fast‑track programme announced by the New South Wales government, allowing data centres to be assessed within 75 days if they meet stringent water and energy criteria. The scheme aims to streamline approvals while safeguarding local resources.
Lane Cove MP Anthony Roberts praised the outcome, calling it a community win that sends a clear message to developers that site suitability must be demonstrated before proposals are tabled. He urged that data centres play a role in the digital economy, but only when they are responsibly integrated with surrounding areas.
For more on the evolving debate around data centres in Australia, see Goodman withdraws Project Mars and the feature article AI data centres are booming in Australia – but at what cost?.
