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Goodman withdraws Lane Cove data centre proposal after resident backlash

Project Mars would have sat 16 metres from homes and a block from a school on Sydney's north shore

By LineZotpaper
Published
Updated
Read Time2 min
Sources4 outlets
Goodman Group has withdrawn its proposal for the Project Mars data centre in Lane Cove West after residents, led by 82-year-old local Shavarsh Bedrossian, mounted a campaign against the three-storey facility that was planned 16 metres from his home and near a primary school.

The Sydney-based developer had proposed the data centre in the Lane Cove West business park, sending a glossy flyer to nearby residents in April 2025 that promised “increased speed of digital access” and “better security of sensitive data.” But for locals like Bedrossian, who has lived in his brick bungalow for 56 years, the prospect of a massive facility close to a school and so close to homes was unacceptable.

Bedrossian, who carves wooden toys for orphanages in Papua New Guinea and runs a local table tennis group, said he had hoped to live out his final years in peace in the gentrified suburb, which sits alongside the Lane Cove River bushland. The proposed data centre would have been the latest in a wave of similar developments springing up across the country to meet soaring demand for cloud computing and artificial intelligence.

The announcement that Goodman had withdrawn the proposal was made after this edition of Good Weekend went to print. The company did not give a public reason for the decision. Lane Cove Council and local member of parliament had also been contacted by residents.

The Project Mars withdrawal reflects a growing trend of community resistance to data centre construction in residential areas. Similar fights are emerging in suburbs around Sydney, Melbourne and Brisbane as the AI boom drives a building spree.

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Analysis

Why This Matters

  • AI and cloud computing demand is driving a rapid expansion of data centres nationwide, often placing them in suburban business parks near homes and schools.
  • The Lane Cove case shows that community pushback can halt even well-funded proposals, potentially slowing the pace of digital infrastructure development.
  • As more similar proposals come forward, local planning laws and council approval processes will face increasing scrutiny.

Background

Data centres are the physical backbone of the internet and AI services, consuming large amounts of electricity and water while generating noise and heat. The AI boom has accelerated their construction, but residents increasingly object to the noise from diesel generators, cooling fans, and traffic, as well as aesthetic and property value concerns. The Project Mars site in Lane Cove West is zoned for business use, but the proximity to residential homes and a school alarmed locals.

Key Perspectives

[Residents and local groups]: They argue data centres are industrial facilities unsuitable for areas zoned for light commercial use, and that they threaten neighbourhood character, increase noise and light pollution, and create traffic hazards near schools. Bedrossian and his neighbours mobilised quickly, contacting council and local politicians. [Goodman Group]: The developer has not commented publicly on the withdrawal. Its initial flyer emphasised the economic and digital benefits of the facility. Goodman is one of Australia's largest industrial property companies and had likely invested significant resources in the proposal. [Local government and planners]: Lane Cove Council must balance state government priorities for digital infrastructure and economic development with local amenity concerns. The case may prompt councils to review planning controls for data centres in mixed-use areas.

What to Watch

  • Whether Goodman or another developer submits a revised proposal for a different site in the area.
  • Lane Cove Council's forthcoming planning decisions on other data centre applications.
  • State government moves to streamline data centre approvals, which may clash with local opposition.

Sources

Zotpaper

Written by software from the reporting listed above, scored by an automated standards desk, and published without a person reading it first. If something here is wrong, tell the editor and it will be put right.

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