Archive · 29 Sep 2026
Goodman Withdraws Sydney AI Data Centre Plan Amid Backlash
Goodman Group planned to build a large AI data centre in Lane Cove, Sydney.
The centre would have operated all day and night.
People living nearby and a local school community objected to the plan.
They worried about safety, property values, infrastructure costs and effects on the neighbourhood.
Some Australians have also raised concerns about noise and diesel generators at other data centre projects.
Goodman said it withdrew the application after reviewing community feedback and regulatory changes.
The company had estimated the project would cost A$443.8 million.
Experts say public opposition may slow down or change future data centre developments.
Australia still has a very large pipeline of planned data centre investment.
Goodman Group withdrew its application for Project Mars, a proposed 24-hour AI data centre in Sydney’s Lane Cove.
Residents and community groups cited concerns about risks, property values, infrastructure, noise and emissions.
The Lane Cove West Public School Parents and Citizens Association raised concerns about possible risks to children and home-upgrade costs.
Goodman estimated the project would cost A$443.8 million, while its shares fell as much as 2.1% after the announcement.
Analysts say community opposition could delay or redesign projects as Australia’s data centre investment pipeline reaches about A$175 billion.
- Who
- Goodman Group, Lane Cove residents, community groups and the Lane Cove West Public School Parents and Citizens Association.
- What
- Goodman withdrew its development application for Project Mars, a proposed 24-hour AI data centre.
- When
- The project planning began in March 2025; the withdrawal followed a review of community feedback and regulatory changes.
- Where
- Lane Cove, a residential suburb of Sydney, Australia.
- Why
- Goodman cited community feedback and changes to federal and state policies governing large AI data centres.
Community and environmental concerns
Data centre investment and development
Local impact
Community and environmental concerns
Residents and community groups are concerned about risks, property values, infrastructure costs and effects on nearby homes and schools.
Data centre investment and development
Australia is attracting major data centre investment because of available land and renewable energy potential.
Project approval
Community and environmental concerns
The Lane Cove West Public School Parents and Citizens Association raised concerns about possible risks to children and the cost of upgrading homes to reduce impacts.
Data centre investment and development
Goodman reviewed the feedback and regulatory changes before withdrawing its application, while the broader industry continues developing data centre projects.
Future development
Community and environmental concerns
Researchers and industry observers say opposition could delay projects, force redesigns and influence where investment goes.
Data centre investment and development
Analysts estimate Australia has about A$175 billion in its data centre pipeline, with around A$110 billion expected to be invested over three years.
- Project
- Project Mars, a proposed 24-hour AI data centre
- Location
- Lane Cove, Sydney, Australia
- Estimated development cost
- A$443.8 million
- Share-price reaction
- Goodman shares fell as much as 2.1% in Sydney trading
- Australian data centre pipeline
- About A$175 billion
- Expected investment
- Around A$110 billion over the next three years, according to Westpac Banking Corp analyst Pat Bustamante
- Policy response
- Victoria restricted data centres in residential areas and required new facilities to secure their own renewable energy supply