Goodman scraps A$1.2bn Sydney data centre amid backlash

Goodman Group has withdrawn its A$1.2 billion application to build Project Mars, a 90-megawatt data centre in Sydney’s Lane Cove, after sustained opposition from residents and amid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.