A Win For The Locals: Proposal To Build Huge Data Centre Withdrawn After Community Backlash
Image: Image: Florian Hirzinger/ wikimedia commons
A massive community response over a development application for a 90-megawatt data centre in Lane Cove has caused The Goodman Group to back down, with residents calling it a win for the community.
The Goodman Group has now retracted plans to build the data centre in Lane Cove, withdrawing their development application from NSW Department of Planning.
The data centre proposal, titled Project Mars, drew an absolutely enormous public response.
Project Mars received 374 public submissions – the highest number recorded for a NSW State Significant Development data centre application. Only nine of these submissions expressed support.
Serious concerns were raised by residents, sporting clubs, environmental groups, local politicians, and more.
Key issues included noise, water consumption, diesel generators, impacts on bushland and the River. Others voiced concerns over proximity to homes, schools and parks.
Mayor of Lane Cove, Councillor Merri Southwood, called it a win for the community.
“Hundreds of residents took the time to understand a complex proposal, write submissions, attend meetings and make their voices heard,” said Southwood.
The Lane Cove Council formally objected to the proposal, citing concerns about building height, visual impacts, and the environmental effects.
The Council also wrote to the Department of Planning, Housing & Infrastructure to express concerns about Goodman’s community engagement strategy.
They argued the process did not provide meaningful, proportionate, or appropriately tailored opportunities for the community and Council to participate in the assessment.
Calls for stronger regulations for building data centres
Deputy Mayor of Lane Cove, Councillor Rochelle Flood, told City Hub that there is still work to be done to prevent future data centre plans.
“Other data centre proposals remain in the Lane Cove West Business Park, and Council will keep advocating for stronger planning controls, proper assessment of cumulative impacts, and a genuine say for local communities in decisions that affect them.”
The Council and community are not alone in pushing for the New South Wales government to slow down on data centre approvals.
Last week, Lord Mayor Clover Moore urged the NSW government to develop a long-overdue statewide planning framework for data centres.
“One functional, data centres employ few, and the streets surrounding them become devoid of activity. It does not make sense to sacrifice scarce inner-city land, better allocated to housing or job-rich businesses,” Moore said.
“Cumulative impacts on local energy networks and water supply should be factored into any new approvals.”
Minister Kobi Shetty for Balmain said, “Data centres need to be located away from residential homes, schools, and sensitive bushland or rivers.”
“It’s the local communities who will pay the price of this poor planning for years to come.”
The Department of Planning, Housing and Infrastructure is expected to confirm the withdrawal in writing.
Residents can still have their say on where large data centres should be located through the Australian Government’s consultation paper. ‘Getting it right: Building AI infrastructure that works for Australia’ is open for community submissions until 9 October 2026.
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