The Senate Environment and Communications References Committee commenced an Inquiry into Artificial Intelligence and Data Centres (Federal Inquiry) in May 2026, chaired by South Australian Senator Sarah Hanson-Young.
The Federal Inquiry is examining the effectiveness of existing regulatory frameworks, the impacts of AI and data centres on communities, industries and the environment, and any related matters.
On Tuesday 22 September 2026, the Federal Inquiry held its first public hearing at the Waterview Community Centre, Lane Cove.
The hearing was held before Senators Sarah Henderson, Sarah Hanson-Young and David Pocock, with Senator Varun Ghosh joining by video link.
Lane Cove was a fitting location for the hearing. AirTrunk has one data centre already operating, one approved and one in the planning system, while Goodman’s highly controversial data centre at 12 Mars Road, Lane Cove is in the planning process.
Nearby in Artarmon, NEXTDC is operating a data centre and Goodman is building another one.
At a Glance
- The Senate inquiry into AI and data centres held its first public hearing in Lane Cove on Tuesday 22 September 2026.
- Goodman expects to decide by the end of the year whether to proceed with Project Mars at 12 Mars Road, and acknowledged it has not secured a social licence.
- AirTrunk’s SYD2 campus is approaching capacity, with a further 40MW under construction.
- Lane Cove Council called for a moratorium until stronger sustainability and planning rules are in place.
- NSROC has identified 27 existing or potential data centre sites across Lane Cove, Willoughby and Ryde.
- The federal consultation paper on AI infrastructure is open for feedback until 9 October 2026.
Goodman: “we’ve got work to do”
The most important moment for Lane Cove was when a Goodman representative appeared before the Federal Inquiry.
Goodman told the committee it expects to decide by the end of the year whether to go ahead with its contested Lane Cove proposal, and it acknowledged it had not secured a social licence for the project.
The proposal is Project Mars (SSD-82052708).
Senator Henderson pressed Goodman hard over how close the building would be to neighbouring homes and urged the company to withdraw an application that would put a large data centre about 16 to 20 metres from residences. In her words, it was a proposal that “shows contempt for local residents”.
Goodman’s General Manager of Development, Ben McGilp, declined to commit to withdrawing, saying the company had not yet decided how to proceed. He said Goodman still had work to do to win community support at Lane Cove.
AirTrunk: SYD2 nearly full, more on the way
AirTrunk was also questioned on the same issue of data centres operating near homes.
Vice President Tom MacKellar said the existing Lane Cove facility sits around 600 metres from the adjoining residential boundary, though one building on Epping Road is about 220 metres away as the crow flies. He did not mention the nearby childcare centre.
More significant was what AirTrunk said about capacity.
AirTrunk said its existing SYD2 campus is approaching capacity, with a further 40MW under construction and due within 12 to 18 months.
AirTrunk has also proposed a separate five-storey, 140MW development with 120 diesel backup generators.
MacKellar told senators AirTrunk strongly encourages a very high bar for data centre development, particularly on community engagement and energy and water use.
Council calls for a moratorium
Deputy Mayor Rochelle Flood represented Lane Cove Council and described data centres at the proposed scale as “essentially an extractive industry”.
She told the committee Lane Cove Council was concerned cumulative impacts weren’t being properly assessed, including effects on air quality, energy and water supply, employment land and nearby bushland.
Councillor Flood said data centres could eventually take up almost half of the Lane Cove West Business Park, and she called for a moratorium until stronger sustainability and planning rules are in place.
A recurring theme was that Council is powerless when it comes to data centre planning decisions. This is because data centres are state significant developments that bypass local councils.
The bigger picture across the north shore
Willoughby Mayor Tanya Taylor spoke as president of the Northern Sydney Regional Organisation of Councils (NSROC).
NSROC has identified 27 existing or potential data centre sites in Lane Cove, Willoughby and Ryde.
NSROC argued data centres shouldn’t displace strategically important industrial and employment land or be built within 800 metres of train and metro stations.
“Light industrial” or heavy industry?
Lane Cove Responsible Planning Group’s evidence went to a definitional question with real consequences. Members Paul Trainor and Sasha Titchkosky called for planning definitions of data centres to be reviewed, arguing that sites often classed as “light industrial” in NSW should be treated as heavy industrial.
Sasha Titchkosky gave the example of a data centre holding one million litres of diesel and almost 200 tonnes of lithium batteries on site.
“They should be treated like heavy industry because their impacts are so great.”
Sasha Titchkosky, Lane Cove Responsible Planning, to the Federal Inquiry
What it means for Lane Cove
A Federal Inquiry can’t approve or refuse a data centre. The NSW planning system makes those decisions. The inquiry can, however, shape national rules.
The Office of AI (part of the Department of the Prime Minister and Cabinet) released a consultation paper on Thursday 17 September 2026, titled Getting it right: Building AI infrastructure that works for Australia: Consultation paper, September 2026.
The Australian Government is seeking feedback on the future of artificial intelligence training and large data centres in Australia.
The paper refers to data centres being located near schools or residential homes only once.
The consultation is open until 9 October 2026. That gives locals about two weeks to make a submission on residential buffers, which is exactly the issue at the heart of Project Mars.
Another milestone is close. The NSW Legislative Council’s own data centre inquiry is due to report by 30 September 2026.
Who gave evidence?
Note list will be updated when Hansard Available
Community and advocacy groups
- Lane Cove Responsible Planning: Paul Trainor and Sasha Titchkosky
- Stop the Slop: campaigner Nirvana Prasad and Sophie Shaaz (Prasad called for a moratorium on Western Sydney data centres; Shaaz criticised the lack of transparency around developments)
- Sweltering Cities: Sanaa Shah, who raised heat and long-term liveability impacts
Local government
- Lane Cove Council: Deputy Mayor Rochelle Flood
- Willoughby City Council and NSROC: Mayor Tanya Taylor
- City of Sydney: Deputy Mayor Jess Miller, who called for a national transparency framework
Industry
- AirTrunk: Tom MacKellar, Vice President, Origination and Market Expansion
- Goodman: Ben McGilp, General Manager, Development
Academic
- University of Technology Sydney : Dr Bronwyn Cumbo, Lecturer
- Western Sydney University: Dr Ian Wright, Associate Professor, School of Science
- UNSW AI Institute: Dr Sue Keay, Director Centre for AI, Trust and Governance (CAITG) and the Net Zero Institute (NZI)
- The University of Sydney: Dr Craig Jin, Associate Professor and Dr Rob Nicholls, Senior Research Associate
The Federal Inquiry will conduct further public hearings in Victoria and Canberra.
Senators Tour Lane Cove Bushland Bordering AirTrunk
Prior to the hearing, Lane Cove councillors and some members of Lane Cove Responsible Planning took Senators Hanson-Young and Henderson to visit AirTrunk’s current data centre. Senator Hanson-Young posted the following on her Instagram page.
Cover Photo: Picture Credit Senator Hanson-Young
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