Australian firm drops US$842 million Sydney data centre plan after public fury

Goodman Group, an industrial property developer, has scrapped a plan to build a $842 million 24-hour data centre in Sydney's north shore due to overwhelming public opposition. The company stated it would not proceed with its Project Mars development application after taking into account changing federal and state policies and community feedback.

Policy and regulation surrounding large artificial intelligence data centres had "evolved significantly" since planning began in March 2025, according to Goodman. The $1.2 billion project was initially planned for the residential suburb of Lane Cove, located just 20 metres from the nearest home and 160 metres from a public school.

The announcement was met with criticism from locals and activists, who raised concerns about the potential impact of locating such a facility near homes. Victoria state recently banned the construction of data centres in residential areas and stipulated that these facilities must generate their own renewable energy supply. Australia is currently experiencing a surge in data centre development, driven by its ample land availability and renewable energy potential.

The nation's data centre pipeline is valued at approximately $175 billion, with around $110 billion of that investment expected to be realized within the next three years, as reported by Westpac Banking senior analyst Pat Bustamante in a recent research note.