Sydney Data Centre Plan Halted Amid Community Opposition

Plans for a major data centre in a Sydney suburb have been scrapped after significant opposition from local residents and campaigners. Goodman Group, a prominent Australian property company, announced it was withdrawing its application for the A$1.2 billion, 90-megawatt facility, codenamed 'Project Mars', in the Lane Cove area.

The decision follows a wave of community objections, with the proposal receiving 374 submissions during a public consultation period, compared to just nine in support. The proposed site was located approximately 20 metres from the nearest residential homes.

In a letter to the New South Wales Department of Planning, Goodman Group cited changes to the "policy and regulatory environment" for large-scale data centre development as a key factor in its decision. The company stated it had "carefully considered these changes" alongside the "views of the local community" before concluding not to proceed.

The controversy highlights a broader debate in Australia regarding the expansion of data centres. The increasing mainstream adoption of generative artificial intelligence has led to a surge in demand for these facilities, positioning Australia as an attractive location due to its energy resources and land availability.

However, this growth has been met with resistance due to the substantial demands data centres place on water and energy resources, as well as the potential disruption to local communities. The sheer volume of submissions against Project Mars, reported by local news outlet In the Cove as the highest ever for a data centre application in the area, underscores the intensity of local concerns.

This withdrawal comes shortly after the New South Wales government announced plans for a fast-track assessment program for data centres. This program aims to expedite approvals for facilities meeting specific standards and contributing to additional water and energy supplies, with assessments to be completed within 75 days.

Anthony Roberts, a member of the New South Wales Legislative Assembly representing Lane Cove, described the decision as "a huge win for the Lane Cove West community" and "a common-sense win." He added that the outcome "sends a clear message to other data centre developers" to carefully select suitable locations and plan developments with community impact in mind. He emphasized that while data centres are important, "developments of this size and scale need to be appropriately located and planned with the surrounding community in mind."