Community Win as Goodman Withdraws Project Mars Data Centre
Published on 29 September 2026
Lane Cove Council welcomes Goodman's withdrawal of its proposed 90-megawatt data centre at 12 Mars Road, Lane Cove West, following record community opposition and Council's push for the NSW Government to slow down data centre approvals.
Goodman has withdrawn its application for Project Mars, a proposed 90 megawatt, 24-hour data centre at 12 Mars Road in the Lane Cove West Business Park.
In a letter to the NSW Department of Planning, Housing and Infrastructure, Goodman confirmed it would not progress the State Significant Development application (SSD-82052708), citing a significantly changed policy and regulatory environment, emerging federal and state policy, and feedback from the local community.
The decision follows one of the strongest community responses to a data centre proposal in NSW. Project Mars attracted 374 public submissions, the highest number recorded for a NSW State Significant Development data centre application, with only nine in support. Residents, sporting clubs, environment groups, the 1st Lane Cove Scout Group and the Lane Cove West Public School P&C all raised concerns about noise, water use, diesel generators, bushland, the Lane Cove River and the site’s proximity to homes, schools and Blackman Park.
Council formally objected to the proposal, raising concerns about height, visual impact, environmental concerns and the cumulative impact of data centres in the Lane Cove West Business Park. Council also wrote to the Department of Planning, Housing & Infrastructure to raise concerns regarding the community engagement strategy being undertaken by Goodman, citing a lack of meaningful, proportionate or appropriately tailored opportunities for the community and Council to participate in the assessment process.
Council has been advocating on data centres since April 2025, when it unanimously adopted a Notice of Motion calling for stronger upfront requirements for proposals, greater local involvement in planning decisions, and protection of bushland and local infrastructure. Council wrote to the NSW Minister for Planning and Public Spaces and raised the issue regionally through the Northern Sydney Regional Organisation of Councils (NSROC).
In March 2026, Council made a submission to the NSW Parliamentary Inquiry into Data Centres calling for stronger state-wide planning controls, proper assessment of cumulative impacts and a user-pays approach to electricity and water infrastructure. A supplementary submission asked the NSW Government to temporarily suspend all State Significant Development applications for data centres in the Lane Cove LGA until the inquiry’s findings are made public.
In July 2026, Council resolved to seek a moratorium on new AI data centre projects until stronger planning and sustainability regulations are established.
In September 2026, Council made a formal submission to the NSW Climate and Energy Action on the “Release of Reforming electricity network connection and cost recovery arrangement for data centres in NSW – Consultation Paper”.
Also in September, Lane Cove Council Deputy Mayor Rochelle Flood described data centres at the proposed scale as "essentially an extractive industry", telling the committee that their cumulative impacts on air quality, energy and water supply, employment land and nearby bushland weren't being properly assessed, that they could eventually take up almost half of the Lane Cove West Business Park, and that a moratorium was needed until stronger sustainability and planning rules are in place, particularly as councils are powerless to intervene because data centres are state significant developments that bypass local government.
Mayor of Lane Cove, Councillor Merri Southwood, said:
“This is a win for our community. Hundreds of residents took the time to understand a complex proposal, write submissions, attend meetings and make their voices heard, and today that effort has paid off.
“Council has been clear from the start. We are not opposed to the digital economy, but these facilities need to be in the right place, with the right safeguards. A 24-hour, 90-megawatt facility next to homes, schools, bushland and children’s sport was never the right fit for Lane Cove West.
“We have asked the NSW Government to slow down and pause approvals for data centres in our area until the Parliamentary Inquiry reports. Today’s decision shows why that matters. The policy landscape is changing rapidly, and decisions made now will shape our neighbourhoods for decades.”
Deputy Mayor of Lane Cove, Councillor Rochelle Flood, said:
“I want to thank every resident, school community, sporting club and local group who stood up for Lane Cove West. Record numbers of submissions, a standing-room-only community meeting and a Senate inquiry hearing held right here in Lane Cove sent a very clear message.
“Goodman has acknowledged it did not have a social licence for this project, and we welcome its decision to listen to the community.
“But our work is not finished. Other data centre proposals remain in the Lane Cove West Business Park, and Council will keep advocating for stronger planning controls, proper assessment of cumulative impacts, and a genuine say for local communities in decisions that affect them.”
The Department of Planning, Housing and Infrastructure is expected to confirm the withdrawal in writing. Council will continue to advocate to the NSW and Australian Governments on data centre planning, including through the upcoming findings of the NSW Parliamentary Inquiry into Data Centres, and the Federal Inquiry into Artificial Intelligence and Data Centres
Residents can still have their say on where large data centres should be located through the Australian Government’s consultation paper, Getting it right: Building AI infrastructure that works for Australia, open until 9 October 2026.