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Goodman Group notified the New South Wales planning department of its decision to withdraw the development application in a letter made public on September 28 2026 according to reports from Reuters and the BBC. The company stated that the policy and regulatory environment for large-scale data centre development has evolved significantly. Goodman has carefully considered these changes together with feedback received through the planning process including the views of the local community and has concluded that it will not progress with the development application. The move represents one of the clearest examples yet of grassroots opposition blocking a data centre project in Australia a Reuters dispatch indicated.
The proposed 90-megawatt facility known as Project Mars would have been constructed approximately 20 metres from the nearest homes in Lane Cove and 160 metres from a local school according to details cited across coverage by the Australian Financial Review and The Guardian. During public consultation the application attracted 374 submissions of which only nine expressed support marking the highest number ever recorded for a data centre proposal in the area the BBC reported citing the local outlet In the Cove. Lane Cove Responsible Planning spokesperson Sasha Titchkosky told The Guardian she was absolutely ecstatic at the decision adding that appropriate regulation earlier could have prevented considerable hassle and heartache.
Goodman Group conceded last week during a federal Senate inquiry into data centres and artificial intelligence that the project had failed to secure a social licence after a lawmaker accused it of showing contempt for local residents Reuters reported. The inquiry forms part of broader national scrutiny of the sector’s environmental footprint vast energy and water consumption impact on power bills and potential noise pollution according to multiple accounts including from Channel News Asia. Australia currently maintains at least 162 operational data centres with another 90 or more in the planning pipeline the vast majority clustered along the eastern seaboard news.com.au figures show in coverage of related proposals.
The withdrawal follows the New South Wales government’s announcement last month of a fast-track assessment programme for data centres that meet criteria including world-class standards for noise and pollution no net cost to communities and provisions for additional energy and water supply a Guardian article outlined. Federal rules introduced in July address community concerns over location choices and resource demands with related legislation slated for parliament in early 2027 according to the same report. These developments contributed directly to Goodman Group’s assessment that proceeding with Project Mars was no longer viable the company’s letter to authorities confirmed.
A comparable case unfolded in June 2026 when developer MAK Urban Group withdrew plans for a data centre in the Blue Mountains town of Katoomba after residents raised alarms over 24/7 low-frequency noise bushfire risks and utility strains the Sydney Morning Herald reported. That proposal prompted a petition with more than 700 signatures and drew objections from the local council which described it as the wrong project in the wrong location according to statements carried by the outlet. Such episodes highlight growing community resistance as Australia seeks to expand its role as a data centre hub to underpin artificial intelligence expansion industry observers noted in related coverage.
Goodman Group ranks among Australia’s 20 largest listed companies and maintains interests in commercial property across the region Reuters noted in its reporting on the Lane Cove decision. The company expressed confidence that data centre infrastructure can deliver economic employment and digital connectivity benefits yet chose to step back from this specific site following the planning process and policy updates. The episode is expected to inform future proposals as regulators and developers navigate the balance between technological demand and local acceptability across New South Wales.
