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# Sydney residents beat $1.2bn data centre planned near homes
- URL: https://www.bushletter.com/sydney-residents-beat-1-2bn-data-centre-planned-near-homes/
- Published: 2026-10-01T01:30:00.000Z
- Updated: 2026-10-01T01:35:16.000Z
- Description: The proposed facility would have operated around the clock just 20 metres from homes. Goodman cited community feedback and an evolving policy environment.
- Author: Editor
- Tags: Property, Australia, Goodman Group

![Gavin O'Malley](https://res.cloudinary.com/dz77sb7j1/image/upload/v1774262585/bushletter/authors/gavin-omalley.png)

By **Gavin O'Malley** · 2026-09-30

TLDR

Goodman Group has withdrawn its $1.2 billion, 90-megawatt Project Mars data centre in Lane Cove West after more than 370 residents lodged formal objections. The site sat 20 metres from the nearest home, drawing complaints about noise, power strain and incompatible scale.

## A $1.2 billion plan stopped by suburb residents

Goodman Group has withdrawn its $1.2 billion Project Mars data centre from Lane Cove West. The company pulled it from the NSW planning system after more than 370 residents lodged formal objections. Application SSD-82052708 is now recorded as withdrawn by the NSW Department of Planning.[\[1\]](https://www.planningportal.nsw.gov.au/major-projects/projects/project-mars-data-centre?ref=bushletter.com) Locals objected to the 20 metres between their front doors and a facility set to run every hour of every day.

The proposed campus at 12 Mars Road would have drawn approximately 90 megawatts of power and operated 24 hours a day.[\[1\]](https://www.planningportal.nsw.gov.au/major-projects/projects/project-mars-data-centre?ref=bushletter.com) Two two-storey buildings covering 18,830 square metres were designed to support computing and AI workloads.[\[2\]](https://majorprojects.planningportal.nsw.gov.au/prweb/PRRestService/mp/01/getContent?AttachRef=SSD-82052708%2120250410T115324.427+GMT&ref=bushletter.com) Goodman cited an evolving policy environment and community feedback in its withdrawal letter to the department on 28 September 2026.

## What residents objected to

Lane Cove West resident Colin Chauvet put it plainly in his formal submission. "The scale of this development, two two-storey facilities totalling 18,830 sqm, plus substantial rooftop plant, is inconsistent with the character of the surrounding area," Chauvet said.[\[4\]](https://www.planningportal.nsw.gov.au/major-projects/projects/project-mars-data-centre?page=3&ref=bushletter.com) Diesel generator noise, proximity to schools and round-the-clock operations ran through the 370-plus submissions as recurring complaints.

Greater Sydney Landcare widened the critique beyond the immediate neighbourhood. The group objected to the proliferation of data centres across the Sydney region and around Lane Cove and Ryde in particular. The group raised concerns about resource consumption and the strain on power and water supply as the region re-enters El Niño conditions. It said it had seen no evidence of these data centres being self-sustaining to minimise their environmental impact. The group added that the net effect was always reduced flora and fauna in the areas in which they are built.[\[5\]](https://www.planningportal.nsw.gov.au/major-projects/projects/project-mars-data-centre?page=13&ref=bushletter.com)

The Secretary's Environmental Assessment Requirements for the project were issued in April 2025, more than a year before the application was ultimately pulled.[\[3\]](https://majorprojects.planningportal.nsw.gov.au/prweb/PRRestService/mp/01/getContent?AttachRef=SSD-82052708%2120250410T115324.588+GMT&ref=bushletter.com) By the time Goodman withdrew, a federal Senate inquiry into AI and data centre expansion was examining the environmental and infrastructure impacts of digital facilities. NSW had also introduced new data centre guidelines covering energy efficiency, water use and community consultation.

KEY TAKEAWAYS

01Goodman Group withdrew planning application SSD-82052708 on 28 September 2026.

02More than 370 formal objections were lodged against the 90-megawatt Lane Cove West proposal.

03Two buildings totalling 18,830 square metres were planned to operate 24 hours a day.

04The site at 12 Mars Road sat just 20 metres from the nearest residential home.

05A federal Senate inquiry into AI and data centre expansion was under way at the time of withdrawal.

SOURCES & CITATIONS

1. [Project Mars Data Centre, NSW Planning Portal](https://www.planningportal.nsw.gov.au/major-projects/projects/project-mars-data-centre?ref=bushletter.com)
2. [Project Mars, Environmental Assessment Requirements (April 2025)](https://majorprojects.planningportal.nsw.gov.au/prweb/PRRestService/mp/01/getContent?AttachRef=SSD-82052708%2120250410T115324.427+GMT&ref=bushletter.com)
3. [Project Mars, Secretary's Environmental Assessment Requirements](https://majorprojects.planningportal.nsw.gov.au/prweb/PRRestService/mp/01/getContent?AttachRef=SSD-82052708%2120250410T115324.588+GMT&ref=bushletter.com)
4. [Project Mars, Public Submissions (page 3)](https://www.planningportal.nsw.gov.au/major-projects/projects/project-mars-data-centre?page=3&ref=bushletter.com)
5. [Project Mars, Public Submissions (page 13)](https://www.planningportal.nsw.gov.au/major-projects/projects/project-mars-data-centre?page=13&ref=bushletter.com)

FREQUENTLY ASKED QUESTIONS

What was Project Mars?

Project Mars was Goodman Group's proposed $1.2 billion data centre campus at 12 Mars Road, Lane Cove West in Sydney. It would have comprised two two-storey buildings covering 18,830 square metres and drawing 90 megawatts of power, operating around the clock to support AI and high-performance computing workloads.

Why did Goodman withdraw the application?

Goodman cited an evolving policy environment and community feedback. More than 370 formal objections were lodged with the NSW Department of Planning, raising concerns about noise from diesel generators, proximity to homes and schools, and strain on power and water infrastructure.

What happens to the site now?

The planning application has been recorded as withdrawn by the NSW Department of Planning. No replacement proposal has been announced by Goodman Group.

![Gavin O'Malley](https://res.cloudinary.com/dz77sb7j1/image/upload/v1774262585/bushletter/authors/gavin-omalley.png)

[Gavin O'Malley](https://bushletter.com/author/gavin-omalley/?ref=bushletter.com)

Gavin O'Malley writes about property and housing. He spends his time at auctions and on building sites, and is more interested in what buyers and builders are actually paying than in what the forecasts say.