Plan for controversial $1.2bn datacentre in Sydney scrapped due to ‘emerging’ regulations

The controversial Project Mars data centre in Sydney's north shore has been abandoned by its developer, Goodman Group, amid growing community opposition. The $1.2 billion project was set to be built in Lane Cove, a mere 20 meters away from a residence and 160 meters from a public school. The withdrawal of the project is attributed to changes in the regulatory environment and feedback from the local community.

Goodman Group cited these factors and the evolving policy and regulatory landscape for their decision. The withdrawal comes as the federal government navigates the delicate balance between attracting AI investment and addressing community concerns about the environmental impacts of data centres. The project had already faced fierce opposition from local community groups who raised concerns about its potential impacts during a Senate inquiry on data centres and artificial intelligence.

Goodman Group's general manager of developments, Ben McGilp, faced pressure from Senator Sarah Henderson to withdraw the proposal. The decision follows a warning from consultancy CT Group and advocacy group Data Centre Australia about the risks of local opposition to data centres.