# Community resistance halts $1.2B data center project in Sydney Residents and regulatory hurdles force Goodman Group to abandon its controversial data center plan. - **Source:** [The Age - Technology](https://www.theage.com.au/rss/technology.xml) - **Published:** 2026-09-29 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/ee2f0f59-b5a1-44fc-94ef-c3569980f209 ## Project Mars withdrawal Goodman Group abandoned its $1.2 billion data center project in Lane Cove West after 374 public submissions, with only nine in support. The 90-megawatt facility would have been 20 meters from homes and 160 meters from a public school. This marks the third data center proposal withdrawn in Australia within five months, following community opposition to projects in Hazelmere and Katoomba. ## Community campaign tactics Residents organized a six-month campaign including a 1,134-signature petition, shareholder resolution, and testimony at NSW parliamentary inquiries. Their efforts gained momentum after a Senate hearing where the proposal was criticized for showing 'contempt for local residents.' The campaign successfully leveraged media attention and regulatory scrutiny to pressure Goodman Group. ## Infrastructure concerns Sydney Water and Ausgrid raised significant concerns about Project Mars. The utility providers cited insufficient water demand details, electrocution risks, and fire hazards from planned on-site diesel storage. The facility's 24/7 noise emissions and industrial-scale operations were deemed incompatible with the light-industrial zoning of the business park. ## Industry pushback Data center advocates initially dismissed community concerns as imported from US debates, noting Australia has only 252 centers compared to America's 5,400. However, Data Centres Australia now acknowledges changing community expectations and policy environments. The industry faces growing scrutiny over location selection and community impact assessments. ## Regulatory shifts Victoria is implementing 150-meter buffers between data centers and homes, while NSW offers 75-day fast-track approvals for projects with independent utility solutions. However, neither state mandates minimum distances from residences. These piecemeal approaches contrast with community demands for evidence-based siting rules and designated precincts with pre-built infrastructure. ## Global context The Lane Cove victory reflects a global trend, with 70% of Americans opposing local AI data centers in a March Gallup poll. New York and Texas have implemented temporary moratoriums on new approvals. International consultancy CT Group now identifies local opposition as the decisive risk factor for data center projects worldwide. ## Industry reputation risk Community organizers argue that ad hoc siting decisions based solely on power availability damage the industry's social license. They advocate for purpose-built precincts with proper infrastructure, including water recycling systems. The Lane Cove group has joined a national alliance of communities opposing similar projects across Australia. ## Ongoing battles Despite Goodman's withdrawal, AirTrunk continues pursuing approval for a 140-megawatt facility on Mars Road. The Lane Cove victory has energized other community groups, establishing a template for opposition. Residents emphasize that developers should only proceed with projects they would accept as neighbors, setting a new ethical benchmark for the industry. ## Sources covering this story - https://www.theage.com.au/technology/too-much-heat-how-residents-beat-a-1-2b-data-centre-20260929-p611a7.html?ref=rss&utm_medium=rss&utm_source=rss_technology — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._