Goodman scraps A$1.2bn Sydney data centre amid backlash

Goodman Group withdrew its A$1.2 billion application for Project Mars, a 90-megawatt data centre in Lane Cove, Sydney. It sent a letter to the NSW Department of Planning, Housing and Infrastructure seeking an immediate halt to assessment. The site sat roughly 20 metres from the nearest house and near a public school. Planning began in March 2025. Consultation drew 374 submissions with nine in support. NSW last month announced a fast-track programme for assessment within 75 days if water and energy conditions are met. Guy Smith wrote that since March 2025 Goodman had undertaken extensive technical investigations, stakeholder engagement and community consultation, that the policy and regulatory environment for large-scale data centre development had evolved significantly, and that having considered emerging federal and state policy and community views it would not progress. Anthony Roberts posted on the Lane Cove Responsible Planning Group Facebook page calling it a huge win and common-sense win for the Lane Cove West community that sends a clear message to developers to find suitable locations first. Local resident groups and campaigners testified at a Senate inquiry into AI and data centre expansion. Ben McGilp faced questioning from Senator Sarah Henderson and was accused of showing contempt for local residents. WHAT'S CONTESTED: No factual disputes found. Goodman cites evolved policy and community feedback. Roberts frames it as a community win.