An Australian company has cancelled plans to build a data centre that was originally set to be constructed just a few meters from homes in a Sydney suburban area, following strong opposition.
Foreign news agencies reported that Goodman Group, Australia's largest real estate company, confirmed it has withdrawn its application to build a Data Centre in Sydney after local residents and activist groups strongly opposed the project.
Goodman Group initially planned to build a 90-megawatt data centre valued at 1.2 billion Australian dollars under the name "Project Mars" in Lane Cove, a northern suburb of Sydney, located only 20 meters from the nearest residential homes.
This dispute reflects conflicting views regarding the expanding role of data centres across Australia.
The recent widespread adoption of Generative AI has dramatically increased demand for data centres, and Australia—with its clean energy, natural gas resources, and available land—has become a global hub for constructing these facilities.
However, despite the Australian government's eagerness to attract investment from global AI companies, they face strong domestic opposition because these data centres consume huge amounts of water and energy and cause disturbances to local communities.
During the public consultation on Project Mars, 374 people submitted objections, while only 9 expressed support.
According to In the Cove, a local news website, the figure of 374 objections is the highest number ever recorded for a data centre development application.
In a letter to the New South Wales Department of Planning, Goodman Group stated that since beginning the planning process in March 2025, the company has conducted technical investigations, collaborated with stakeholders, and comprehensively gathered community feedback.
"During this time, policies and regulations for large-scale data centre development have evolved significantly," the company said, adding that they "carefully considered these changes" along with "local community perspectives" and decided not to proceed with the project.
Goodman Group's decision came after the New South Wales government announced in August it would apply a Fast-track approval process to this data centre project, allowing assessment within 75 days if the centre met certain standards and supported funding for additional energy and water supply.
Anthony Roberts, a member of the New South Wales Planning Council representing Lane Cove, described this as "a major victory for the West Lane Cove community. This is a reasonable win for our community."
"This victory sends a clear message to other data centre developers to find suitable locations before submitting proposals," he said. "Data centres play an important role, but developments of this scale need to be situated appropriately and planned with consideration for the surrounding community."
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Source:bbc