Goodman Group has abandoned plans for Project Mars, a proposed AI data centre in Lane Cove West, northern Sydney, after strong local opposition and changes in the regulatory environment. The decision matters because it halts a large, round-the-clock facility planned close to homes and a public school, amid wider debate about the impacts of Australia’s growing data centre industry.

The proposed three-storey centre would have covered 21,000 square metres, operated at 90 megawatts and used an estimated 1.4 million litres of drinking water a day for cooling. Its planning application received 374 public submissions, with only nine in support; Sydney Water had also warned that existing infrastructure would be limited in its ability to supply the project. New South Wales has introduced rules requiring developers to fund additional water and energy supply, while federal legislation is not expected until early 2027.