Australia newsDatacentres - AustraliaNew South WalesSydneyTechnology

Plan for controversial $1.2bn datacentre in Sydney scrapped due to ‘emerging’ regulations

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This story was selected and curated by our editorial team in the Australia news category. Published on September 28, 2026 • Originally reported by Josh Taylor Technology reporter. OMEGAZEPRIME provides independent news coverage and analysis for our readers. Stay informed with the latest developments.

Developer Goodman Group says changes in government rules are behind decision to pull plug on ‘Project Mars’ in Lane Cove

Plans for a controversial $1.2bn datacentre in Lane Cove in Sydney’s north have been withdrawn, with the developer blaming “emerging” regulations from the state and federal governments for the decision to pull the plug.

The “Project Mars” plans were withdrawn from the NSW planning portal on Monday, with the developer, Goodman Group, posting on its site that the policy and regulatory environment for large-scale datacentres had “evolved significantly”.

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