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The Guardian
· collected 2026-09-28 · by Josh Taylor Technology reporter
Developer Goodman Group has scrapped plans for a $1.2 billion datacentre in Lane Cove, Sydney, citing changes in federal and state regulations as the reason. The company withdrew "Project Mars" from the NSW planning portal on Monday after community opposition due to environmental concerns and proximity to schools. Local resident Sasha Titchkosky expressed relief over the decision but criticized the delayed regulatory response, thanking Goodman for addressing community concerns.
Written locally by qwen2.5:14b on 2026-09-28,
using this article's own text rather than the other coverage of the
same event (that is the story summary below).
Story summary
Goodman Group, an Australian industrial property developer, scrapped its $1.2bn Project Mars data center plan in Lane Cove, Sydney, citing evolving federal and state policies and significant community opposition. The project, proposed in March 2025, aimed for a 90-megawatt facility near residential areas and within 160 meters of a school. In August, the NSW government introduced a "fast-track" framework to assess data center applications within 75 days if they meet certain principles, including minimal environmental impact and community costs. However, growing public concerns over noise pollution, energy consumption, and proximity to residential areas led to 374 public submissions, with only nine in favor of the project. Following these developments and community feedback, Goodman decided not to proceed with the development application due to regulatory changes and local resistance.
Written for “Sydney Data Centre Plan Scrapped” on 2026-10-06,
grounded in this article and the 2 other(s) covering the same event.
Plans for a controversial $1.2bn datacentre in Lane Cove in Sydney’s north have been withdrawn, with the developer blaming “emerging” regulations from the state and federal governments for the decision to pull the plug.
asserted
developer → withdraw → plug
The “Project Mars” plans were withdrawn from the NSW planning portal on Monday, with the developer, Goodman Group, posting on its site that the policy and regulatory environment for large-scale datacentres had “evolved significantly”.
asserted
environment → withdraw → datacentres
“Having considered emerging federal and state policy, Goodman has concluded that it will not progress with the development application.”
asserted
it → consider → application
In August, the NSW government announced its new “fast-track” framework for datacentre applications that promised to assess applications within 75 days if the plans meet set principles, including applying “world-class” standards for noise and air pollution, imposing no net cost to consumers and communities and funding additional water and energy supply.
asserted
plans → announce → supply
It followed the federal government’s rules in July aimed at addressing growing community concerns with datacentre location choices, and energy and water use requirements, with legislation expected to hit the federal parliament early next year.
asserted
legislation → follow → parliament
The Lane Cove proposal had become one of the main sources of criticism of the datacentre growth in Australia.
asserted
proposal → become → Australia
The proposal had been criticised by local residents due to its proximity to local schools, event spaces and green space, as well as the growing concerns about clustering with a number of datacentres planned or in operation in Lane Cove.
asserted
proposal → criticise → Cove
Guardian Australia first reported the community concerns in May.
uncertain
Australia → report → May
Lane Cove Responsible planning spokesperson Sasha Titchkosky said she was “absolutely ecstatic” at the decision to withdraw the plans.
asserted
she → say → plans
“I think we could have all saved everyone a lot of hassle and heartache if we actually had an appropriate regulatory regime and the government at state and federal had jumped on this when we started calling for better regulation.
uncertain
we → think → regulation
“There was a real regulatory gap and that’s causing issues all around the country with inappropriate datacentres being put forward that really don’t give communities any benefits.
asserted
that → be → benefits
Titchkosky thanked Goodman Group for listening to community concern and withdrawing the proposal.
asserted
Titchkosky → thank → proposal
A spokesperson for Goodman Group declined to comment further, but pointed to the opening statement made by the company’s general manager for development, Ben McGilp, at last week’s hearing of the Senate inquiry into datacentres.
asserted
spokesperson → decline → datacentres
McGilp said the company supports “clear, consistent and evidence-based regulation that provides confidence for communities, governments and industry”.
asserted
that → say → communities
The peak body for the sector, Data Centres Australia, warned the committee in its submission to the inquiry that the risk for Australia is not over-building datacentres but “under-building”.
asserted
risk → warn → datacentres
“Turning the investment away does not reduce global data centre energy or water use, it simply redirects it to jurisdictions with weaker protections than Australia’s, while Australia forgoes the economic value and the sovereign capability.”
asserted
Australia → turn → value
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