$1.2 Billion Data Center Project in Lane Cove Withdrawn, Highlights Importance of Location Suitability for Digital Infrastructure

RNTv-SYDNEY, The proposed A$1.2 billion data center development in Lane Cove West, Sydney, known as Project Mars, has been formally withdrawn by its developer, Goodman Group.

The project, lodged since March 2025, was planned with a capacity of approximately 90 megawatts to support the growth of cloud services, digital transactions, and artificial intelligence (AI). Its investment value is estimated at over one billion Australian dollars.

*Objections Related to Location*

The project’s proximity to residential areas was a primary concern. According to planning documents, the nearest house is located approximately 20 meters from the site, while Lane Cove West Public School is approximately 160 meters away.

During the planning consultation process, 374 public submissions were recorded, with 358 of them being objections. Concerns raised included potential noise from 24/7 cooling systems and dozens of backup diesel generators, air quality, electricity and water demand, and environmental impacts.

Lane Cove Council also highlighted the potential pressure on the local electricity grid and the cumulative impact if several data centers were concentrated in one area.

*Context of Data Center Growth in Sydney*

According to projections noted by the City of Sydney in 2026 from energy regulators and Sydney Water, by 2030 data centers in Sydney could potentially use around 11 percent of the grid electricity and 20 percent of the city’s drinking water. This projection illustrates the scale of resource requirements as digital technology and AI usage continues to increase.

*Reason for Withdrawal*

In late September 2026, Goodman Group informed the NSW Department of Planning that the company would not proceed with the development application.

The company stated that since 2025 there have been changes in policy and regulations regarding large-scale data center developments at both federal and state levels. The decision was made after considering these policy developments and feedback received during the planning process, including views from the local community.

*Lessons for Digital Infrastructure Development*

The Project Mars case demonstrates that the development of digital infrastructure is not determined solely by investment value and technological demand, but also by location suitability, readiness of electricity and water infrastructure, compliance with noise and environmental regulations, and acceptance by the surrounding community.

Data centers remain critical infrastructure to support the digital economy — from digital banking and cloud services to AI. However, their placement requires planning that balances technological needs with the liveability of residential environments.

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Proyek Data Center A$1,2 Miliar di Lane Cove Ditarik, Soroti Pentingnya Kesesuaian Lokasi Infrastruktur Digital

SYDNEY – Rencana pembangunan data center bernilai A$1,2 miliar di Lane Cove West, Sydney, yang dikenal sebagai Project Mars, resmi ditarik oleh pengembangnya, Goodman Group.

Proyek yang diajukan sejak Maret 2025 tersebut direncanakan memiliki kapasitas sekitar 90 megawatt untuk mendukung pertumbuhan layanan cloud, transaksi digital, dan kecerdasan buatan (AI). Nilai investasinya diperkirakan setara belasan triliun rupiah.

*Keberatan Terkait Lokasi*

Lokasi proyek yang berdekatan dengan permukiman menjadi perhatian utama. Berdasarkan dokumen perencanaan, rumah terdekat berjarak sekitar 20 meter dari lokasi, sementara Lane Cove West Public School berjarak sekitar 160 meter.

Dalam proses konsultasi perencanaan, tercatat 374 pengajuan dari masyarakat, dengan 358 di antaranya merupakan keberatan. Kekhawatiran yang disampaikan meliputi potensi kebisingan dari sistem pendinginan dan puluhan generator diesel cadangan, kualitas udara, kebutuhan listrik dan air, serta dampak lingkungan.

Lane Cove Council juga menyoroti tekanan potensial terhadap jaringan listrik lokal dan dampak kumulatif jika beberapa data center terkonsentrasi di satu kawasan.

*Konteks Pertumbuhan Data Center di Sydney*

Menurut proyeksi yang dicatat City of Sydney pada 2026 dari regulator energi dan Sydney Water, pada tahun 2030 data center di Sydney berpotensi menggunakan sekitar 11 persen listrik jaringan dan 20 persen air minum kota. Proyeksi ini menggambarkan besarnya kebutuhan sumber daya seiring meningkatnya penggunaan teknologi digital dan AI.

*Alasan Penarikan Pengajuan*

Pada akhir September 2026, Goodman Group menginformasikan kepada Departemen Perencanaan New South Wales (NSW Department of Planning) bahwa perusahaan tidak akan melanjutkan permohonan pembangunan.

Perusahaan menyatakan bahwa sejak 2025 telah terjadi perubahan kebijakan dan regulasi terkait pembangunan data center skala besar di tingkat federal dan negara bagian. Keputusan tersebut diambil setelah mempertimbangkan perkembangan kebijakan tersebut serta masukan yang muncul selama proses perencanaan, termasuk pandangan masyarakat.

*Pembelajaran untuk Pembangunan Infrastruktur Digital*

Kasus Project Mars menunjukkan bahwa pengembangan infrastruktur digital tidak hanya ditentukan oleh nilai investasi dan kebutuhan teknologi, tetapi juga oleh kesesuaian lokasi, kesiapan infrastruktur listrik dan air, kepatuhan terhadap regulasi kebisingan dan lingkungan, serta penerimaan masyarakat sekitar.

Data center tetap menjadi infrastruktur penting untuk menopang ekonomi digital — mulai dari perbankan digital, layanan cloud, hingga AI. Namun, penempatannya memerlukan perencanaan yang memperhitungkan keseimbangan antara kebutuhan teknologi dan kelayakan lingkungan permukiman. (utw)

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