Australian real estate firm Goodman Group has dropped plans for a data center campus in Sydney.

Goodman this week announced it has pulled its application for Project Mars, a 90MW development planned in the Lane Cove area of Sydney, New South Wales.

In a post on its website, Goodman said that since commencing the planning process in March 2025, the policy and regulatory environment for large-scale data center development had “evolved significantly.”

“Goodman has carefully considered these changes together with feedback received through the planning process, including the views of the local community,” the company said. “Having considered emerging federal and state policy, Goodman has concluded that it will not progress with the development application.”

An official withdrawal letter was also posted to the New South Wales government’s planning portal this week.

News of Project Mars first surfaced in April 2025. Located at 12 Mars Road, the company had hoped to invest AU$1.2 billion (US$725 million) in developing two two-story buildings totaling 18,830 sqm (202,685 sq ft).

Traditionally focused on logistics and industrial real estate, Goodman has data center projects in operation or development across Hong Kong, Australia, Germany, the US, and Japan.

Despite the setback, Goodman still has plans to develop multiple data center sites across Sydney.

The company is redeveloping the former ABC television studios in the city’s North Shore area into a 90MW data center.

It also has approval for a 126MW facility in Guildford West on a former Castrol site and a 135MW project in the Macquarie Park area.

It also has plans to redevelop a former Eaton warehouse site in Mascot into a 90MW facility.