Goodman Group drops Sydney data centre plan after local backlash

Australia's largest property company, Goodman Group, has withdrawn its development application for a A$1.2 billion data centre in the Sydney suburb of Lane Cove, following sustained opposition from local residents.

The proposed 90-megawatt facility, known as Project Mars, would have been built roughly 20 metres from nearby homes. In a letter to the state planning department, the company said it was abandoning the application.

"The policy and regulatory environment for large-scale data centre development has evolved significantly," the letter stated, adding that Goodman had weighed those changes alongside feedback from the planning process, including the views of the local community.

The decision marks one of the most visible instances of grassroots resistance halting a data centre project in Australia. As the country positions itself as a global hub for such facilities, developments have come under increasing scrutiny over their environmental footprint, heavy energy and water use, effects on power bills, and potential noise pollution.

Last week, during a Senate inquiry into data centres, Goodman acknowledged that the project had not secured a "social licence", after a lawmaker accused the company of showing contempt for local residents.

The withdrawal leaves the site without an approved data centre development, though the company did not indicate any alternative plans.