AirTrunk Abandons 140MW Lane Cove Data Centre Proposal Amid Growing Community Opposition

Global data centre developer AirTrunk has abandoned plans for a proposed 140-megawatt data centre development in Lane Cove West, Sydney, marking another significant setback for Australia’s rapidly expanding data centre industry.

The decision follows months of community opposition to the proposed facility, which was planned for a site between Mars Road and Apollo Place in Sydney’s northern suburbs.

AirTrunk, backed by global investment interests including Blackstone and the Canada Pension Plan Investment Board, confirmed it would not proceed with the additional development, which had been progressing through preliminary planning work.

In comments provided to local publication In the Cove, AirTrunk confirmed that following completion of its approved Stage 5 development, it had no plans for further data centre developments in Lane Cove.

The proposed 140MW facility was separate from AirTrunk’s existing SYD2 data centre campus and its approved Apollo Place expansion, both of which will continue.

The decision comes amid growing public concern about the rapid expansion of large-scale data centres in established urban and industrial areas. Residents have raised concerns about noise, diesel generators, electricity consumption, water requirements, environmental impacts and the cumulative effect of multiple facilities operating within a relatively small geographical area.

Lane Cove has become an important example of the tensions emerging between Australia’s ambition to attract major technology infrastructure investment and the expectations of local communities living alongside these developments.

AirTrunk’s announcement also follows Goodman Group’s September 2026 decision to withdraw its proposed $1.2 billion, 90MW Project Mars data centre at 12 Mars Road. That project attracted 374 public submissions, with only nine supporting the proposal.

The withdrawal of the two major proposals represents a significant development for the local community and raises broader questions about the suitability of locating hyperscale data centres close to established residential neighbourhoods.

The issue has also attracted attention at state and federal government levels. A NSW parliamentary inquiry into data centres tabled its report in November 2026, making 23 recommendations aimed at strengthening planning, environmental oversight, energy efficiency and community consultation.

For AirTrunk, the Lane Cove decision also appears consistent with a broader industry shift towards larger data centre developments in locations where land, electricity infrastructure and future expansion opportunities may be more readily available.

The company continues to develop its existing Lane Cove campus, but the abandonment of the additional Mars Road proposal signals a changing environment for data centre developers operating in metropolitan Sydney.

For the broader Australian industry, the message is becoming increasingly clear: access to capital, technology and electricity infrastructure is no longer enough. Community acceptance, appropriate site selection and responsible planning are becoming equally important considerations in delivering major data centre investments.

As Australia positions itself to become a significant global destination for artificial intelligence and hyperscale computing, the Lane Cove experience may prove to be an important lesson for developers, governments and investors considering where the next generation of digital infrastructure should be built.