Particle.news

Goodman Withdraws Contested Lane Cove Data Centre Plan

The developer said evolving regulation plus strong local feedback prompted the decision and the move raises questions about Australia’s ability to attract future data‑centre investment.

Overview

  • Goodman Group formally told the NSW Department of Planning it will not proceed with Project Mars, withdrawing its development application for the proposed $1.2 billion site in Sydney's Lane Cove.
  • The company said changes to the policy and regulatory environment together with feedback from the planning process informed its decision.
  • Project Mars was a three‑storey, 90‑megawatt proposal sited about 20 metres from the nearest house and 160 metres from Lane Cove West Public School, which residents and campaigners strongly opposed.
  • The proposal became a focal point at the federal senate inquiry into data centres and AI, where local groups and Liberal senator Sarah Henderson publicly pressed Goodman to abandon the plan.
  • Industry groups and consultancies warn approval uncertainty and loss of social licence could push investment offshore while governments press ahead with new NSW fast‑track rules and planned federal data‑centre regulations.