Plans for a massive data‑centre in Sydney’s Lane Cove suburb have been abandoned after strong opposition from residents and Indigenous groups.

The $1.2 billion, 90‑megawatt Project Mars would have been built just twenty metres from a local house on land once managed by the Gidigal Yidindji people.

Goodman Group, Australia’s largest property developer, said in a letter to the New South Wales Department of Planning that changing policy, regulatory requirements and community views forced a rethink of the proposal.

Local activists, including elders advocating for protection of water supplies and cultural sites, argued that the data centre’s demand for energy and groundwater would compromise the natural flow that Aboriginal communities rely on for ceremonial practices and subsistence.

The decision echoes wider debate over the rapid growth of AI‑related infrastructure. While the state has introduced a fast‑track approval scheme for data centres, the Lane Cove community stresses that future projects must undergo rigorous assessment of environmental and cultural impact.

During the consultation, 374 submissions were received – only nine were in favour of the project, with the majority opposing it on environmental and heritage grounds. The high volume of input marks a historic level of community participation.

Chief executive of Lane Cove Responsible Planning Group, Anthony Roberts, said, “This outcome sends a clear message that data‑centre developers must identify suitable sites before making proposals and plan with surrounding communities in mind.”

The outcome is a triumph for Indigenous land‑rights advocates who see it as recognition that traditional ownership and stewardship of natural resources must account for the environmental costs of modern technology.