Sydney Data Centre Project Scrapped Amid Community Outcry

A proposed data centre development in Sydney's north shore has been withdrawn by its developer, Goodman Group, amid growing opposition from the local community. The $1.2 billion Project Mars development in Lane Cove had attracted controversy due to its proximity to residential areas and a local school.

In a statement, Goodman Group confirmed that it had told the NSW Department of Planning it would no longer proceed with the project, citing "changes in regulatory environment". "During this time, the policy and regulatory environment for large-scale data centre development has evolved significantly," it said. "Goodman has carefully considered these changes together with feedback received through the planning process, including the views of the local community."

The project was approximately 20 metres from the nearest house and 160 metres from Lane Cove West Public School. Local community groups had fiercely opposed the project, citing concerns about its expected impacts. These groups appeared before the first hearing of the federal senate inquiry into data centres and artificial intelligence last week, along with Goodman's general manager of developments Ben McGilp.

Liberal senator Sarah Henderson repeatedly pressured Mr McGilp to withdraw the proposal on the spot, saying it was a "wholly unreasonable proposal… that shows contempt for local residents".

Sweltering Cities senior campaigner Sanaa Shah said she was glad to see the project shelved. "It's a clear testament to the large scale community resistance that's forming to data centres. It's something we're observing across the country," she said.

Goodman's decision comes after NSW introduced a new fast-track program for data centres that met certain requirements, and in anticipation of new federal rules for data centres that the Prime Minister now says will be introduced into Parliament by the start of this year.

Last month, consultancy CT group told its clients that local opposition to data centres had become a risk to their development. Advocacy group Data Centre Australia recently warned Australia risked losing data centre developments to neighbouring countries.