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Goodman Group Abandons $1.2 bn “Project Mars” Data Centre after Community Opposition
By Drooid · · How we work
Project Mars Withdrawn After Community Pushback
Goodman Group announced that it will not proceed with the proposed Project Mars data centre in Lane Cove, Sydney. The three-storey, 90-megawatt facility, valued at A$1.2 billion (?£630 m, $841 m), was slated to sit about 20 metres from the nearest house and 160 metres from Lane Cove West Public School. In a letter to the New South Wales Department of Planning, Goodman cited “changes in the regulatory environment” and feedback from the local community as reasons for the withdrawal.
Context: AI-Driven Data Centre Boom and Regulatory Landscape
Australia’s clean-energy resources have attracted global AI firms, prompting a surge in data-centre proposals. The NSW government recently introduced a fast-track programme that can approve qualifying projects within 75 days, provided they meet water- and energy-supply standards. Simultaneously, the federal government is preparing new rules on data-centre energy and water use, expected to be tabled in Parliament early next year. This regulatory shift has heightened scrutiny of large-scale facilities such as Project Mars.
Official Statements & Responses
The NSW Department of Planning received 374 public submissions on the proposal, with only nine supporting it—a record level of community response for a data-centre application.
Criticism & Opposition
Sanaa Shah, senior campaigner with Sweltering Cities, welcomed the withdrawal, saying it demonstrated the scale of community resistance forming around data centres across Australia.
Belinda Dennett, CEO of Data Centre Australia, warned that approval processes, supply-chain issues, and “social licence” concerns could cause Australia to lose future projects to neighboring countries.
Data & Statistics
- Project cost: A$1.2 billion (£630 m, $841 m).
- Power capacity: 90 megawatts.
- Public submissions: 374 total, nine in favour.
- Proximity: ~20 metres to the nearest residence; ~160 metres to a local primary school.
The abandonment of Project Mars underscores the growing tension between Australia’s ambition to host AI infrastructure and the mounting community and regulatory pressures surrounding water, energy, and local impact.