Australia’s largest property company, Goodman Group, has acknowledged it has yet to secure community approval for a planned data centre in a residential area of Sydney, following criticism from local residents and lawmakers. The proposed 81-megawatt facility is set to be built in an industrial section of Lane Cove, an affluent suburb of approximately 13,000 people located about 12 kilometers from Sydney’s central business district.
Ben McGilp, Goodman’s general manager of development, said during a Senate inquiry on data centres that the company is committed to ongoing community consultation but has not yet addressed all resident concerns. “Clearly we’ve got a difference of opinion in Lane Cove with our community, and it’s something that sits uncomfortably with us,” McGilp stated.
The inquiry, partly held in Lane Cove itself, highlighted growing tensions around Australia’s expanding data centre industry, driven in part by rising demand linked to artificial intelligence technologies. Lane Cove has emerged as a focal point for public debate, reflecting similar disputes occurring internationally over the siting of such large infrastructure projects near residential neighborhoods.
Residents at the hearing criticized Goodman’s consultation efforts as inadequate, describing the engagement approach as limited mainly to leaflet distribution and sporadic information stands, which many felt failed to provide meaningful dialogue. This has fueled local opposition to the project, with some community members urging the company to reconsider the location.
Conservative Senator Sarah Henderson questioned the reasoning behind the facility’s proximity to homes, expressing disbelief over the plan to build the data centre just 16 to 20 meters from residential properties. “On what planet do you think that that is acceptable to build a massive data centre 16 or 20m from someone’s home?” she said.
The Australian government initially supported data centre growth without strict location restrictions but announced earlier this year it would introduce regulations effective in early 2027. These include new guidelines on data centre siting, aimed at balancing technological development with community and environmental considerations amid the surge in AI-related infrastructure demand.
The ongoing Senate inquiry is expected to continue examining these issues, as Goodman and other stakeholders navigate the challenges of expanding data centre capacity while addressing public concerns.