An industrial property giant’s plan for a hyperscale data centre on Sydney’s north shore has sparked outrage among residents, while utility providers Sydney Water and Ausgrid are concerned the development will strain existing infrastructure and increase electrocution or fire risks.
Goodman Group placed state-significant plans for the construction and 24/7 operation of an $800 million, 81-megawatt data centre on public exhibition in March, which will, if approved, require demolition and excavation of four existing warehouses.
The 28-metre-tall “Project Mars” data centre sits within the Lane Cove West industrial area, is bordered by a park, low-density homes 50 metres to the east, and Lane Cove West Public School about 160 metres north-east of the site.
In a letter to the planning department in May, Ausgrid raised issues about the compatibility of the data centre with existing infrastructure, requiring “due consideration be given … particularly in relation to risks of electrocution, fire risks”, citing other noise and visual amenity impacts.
Data centres are large, energy-intensive facilities requiring uninterrupted power and a constant supply of potable water to cool servers. At capacity, Goodman anticipates Project Mars to use about 35 litres of water per second during peak times and about 1.4 million litres per day.
Sydney Water said in a submission it was “unable to support progression” of the data centre without more detailed planning assessments of water demand and wastewater impacts. The state-owned corporation said Project Mars would heap pressure on the existing drinking water system, which in its view had “limited capacity to service the development”.
Both utility providers’ doubts illustrate a pattern of concerns that emerge when data centre developments outpace upgrades to critical infrastructure, strained by population growth and climate change. The global AI boom has boosted demand for data centres with greater capacity in Sydney: there are 41 state-significant projects across the city in the development pipeline, of which 18 have been approved.
Goodman said Project Mars would create 26 jobs, and its “strategic” location in Lane Cove’s industrial zone would support the region through faster, more secure connections, with options to store data locally to minimise cybersecurity risks.
Marianna Chlebek is among many residents opposed to the project because of its proximity to homes, schools, and parks, which she says means noise from generators and cooling systems can be heard from far away.
“It’s concerning such an invasive building is being proposed right at our doors. Another problem is the cluster – we already have a large AirTrunk data centre a few hundred metres away from the proposed one,” Chlebek said.
A petition with more than 1100 signatures has been tabled in parliament and is awaiting a response from NSW Planning Minister Paul Scully. Goodman is preparing a response to the submissions, due by early August.
