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BusinessSydney, New South Wales, Australia

Goodman Group Drops $841m A$ Data Centre Plan After Community Protest

Goodman Group pulls its 1.2bn AUD data centre near Sydney home after 374 objections, marking a win for local residents.

Source: bbc.co.uk1 min read
Sign reading “No Goodman Data Centre” outside a home in Lane Cove
Sign reading “No Goodman Data Centre” outside a home in Lane Cove

In brief

Goodman Group, Australia’s largest property developer, scrapped its A$1.2 billion “Project Mars” data‑centre plan in Lane Cove after fierce opposition from residents who filed 374 objections. The high‑power facility would have opened just 20 metres from a house, sparking concerns over water usage, energy demand and community disruption. NSW’s fast‑track data‑centre playbook coincides with a growing global boom in AI infrastructure, but local backlash shows that the scale and siting of such sites cannot ignore community sentiment. The decision marks a rare example of developers responding to public pressure and sets a precedent for future projects.

Goodman Group, Australia’s largest property developer, scrapped its A$1.2 billion “Project Mars” data‑centre plan in Lane Cove, after a campaign led by local residents generated 374 objections.

The 90‑megawatt facility would have been built a mere 20 metres from a neighbour’s house, raising alarm over its huge water and power usage – a perennial problem for “mega‑data centres” worldwide.

Goodman said it began consultations in March 2025 and, after “extensive technical investigations, stakeholder engagement and community consultation” and noting a shift in the policy landscape, it decided not to proceed.

The move follows the New South Wales government’s last‑month announcement of a fast‑track scheme that would approve large data‑centre proposals within 75 days, provided developers meet a battery of environmental and infrastructure criteria.

“This is a huge win for the Lane Cove West community. This victory sends a clear message to other data‑centre developers,” said NSW parliamentarian Anthony Roberts.

The debate reflects a broader clash across Australia as the AI boom fuels demand for data hubs, with clean‑energy and gas reserves making the country a favourite destination – yet the scale of the developments is increasingly met with community resistance.

For more on the surrounding debate, read the BBC’s feature on how Australian AI data‑centres are “booming … but at what cost?” https://bbc.com/news/articles/cgl3we7wdr3o

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