Australian property developer Goodman Group has withdrawn plans for a major data centre in Sydney following opposition from local residents, highlighting growing tensions over the expansion of digital infrastructure in residential areas.
The proposed 90-megawatt Project Mars was planned for Lane Cove on Sydney’s North Shore. The development, estimated to be worth about A$1.2 billion, would have included a three-storey data centre located relatively close to nearby homes and a local school.
Goodman said it decided to abandon the project after considering community feedback and changes in the regulatory environment. The company had faced criticism during the planning process, with residents raising concerns about the potential impact of the facility on the surrounding neighbourhood.
The decision comes as demand for data centres accelerates across Australia, driven by cloud computing, artificial intelligence and other digital services. However, the rapid growth of the sector is also generating debate over electricity demand, water consumption, noise, environmental impacts and the location of large facilities near residential communities.
The cancellation of Project Mars underscores a broader challenge facing the data-centre industry: expanding the infrastructure needed to support the AI and digital economy while addressing concerns from communities where these facilities are being developed.
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