Major Australian property developer abandons controversial Sydney data centre

Goodman Group, one of Asia-Pacific's largest logistics and industrial property developers, has scrapped plans for a major data centre in Sydney after mounting pushback from local communities and authorities. The decision to abandon Project Mars represents a significant retreat by the company following sustained opposition to the proposal.

In a statement, Goodman Group attributed the decision to evolving conditions in the policy and regulatory environment surrounding the project. The company did not elaborate further on specific regulatory hurdles or community concerns that led to the withdrawal.

The cancellation underscores growing tensions in Australia's property sector over balancing infrastructure development with local concerns. Data centres have become increasingly contentious in urban areas, with residents and local governments raising issues related to environmental impact, energy consumption, and land use planning.

Goodman Group remains one of the region's most active real estate investors, with substantial portfolios across logistics and industrial properties. The company has not indicated whether it plans to pursue alternative data centre locations or projects in the Sydney region.