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Goodman Group Withdraws A$1.2 Billion Project Mars Data Center Plan in Sydney After Community Backlash

September 29, 2026 at 01:14 EDT

Infra & Chips
Policy & Regulation

Goodman Group has withdrawn its planned Project Mars data center in Lane Cove, suburban Sydney, after local opposition and shifting regulation turned the A$1.2 billion proposal into a test case for Australia’s AI infrastructure boom. The company told New South Wales planners on September 28, 2026 that it would no longer proceed with the development application, citing a changed policy environment and feedback received during assessment.

September 28, 2026 · Goodman Group

Sydney data center plan pulled

Project Mars, a proposed 90MW facility in Lane Cove, was withdrawn after local opposition and a changing regulatory environment reshaped the approval path.

A$1.2B

reported project value

90MW

planned capacity

374

public submissions

75 days

fast-track target

How close was the site?

20m

nearest home

160m

nearby school

Each block represents 20 metres. The short separation from homes became a central planning and community concern.

Capacity case

AI and cloud services need large-scale compute, power and network access, and Australia is competing for that investment.

Community case

Residents objected to noise, water and energy demand, backup generators, visual impact and clustering near homes and a school.

The planning signal

Local objections→Senate scrutiny→Emerging rules→Application withdrawn

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