AirTrunk Scraps 140MW Lane Cove Data Centre Plans and NSW Inquiry Calls for Tougher Rules

It’s been a big week for data centre news in Lane Cove.

AirTrunk has confirmed to In the Cove that it will not proceed with its proposed 140-megawatt data centre between Apollo Place and Mars Road in Lane Cove West.

The proposal, submitted to the NSW Department of Planning, Housing and Infrastructure (NSW Planning) on 6 March 2026, was for a data centre with a maximum building height of 37.4 metres.

In the Cove understands that the decision to not go ahead was made a couple of months ago, but AirTrunk had not taken steps to notify NSW Planning.

This decision does not affect AirTrunk’s existing SYD2 data centre or the approved Apollo Place development (Stage 5) next door. AirTrunk says the two adjoining developments will form an integrated data centre campus.

The announcement comes in the same week that a NSW parliamentary inquiry called for stronger rules governing data centres and greater consideration of their combined impact on communities.

What has AirTrunk told ITC?

AirTrunk told ITC :

An EIS is an Environmental Impact Statement.

What is still being built at Apollo Place?

The Mars Road announcement does not mean work is stopping at Apollo Place. AirTrunk describes the adjoining Apollo Place development as Stage 5 of its approved SYD2 development.

AirTrunk says its latest modification proposal would reduce the development’s gross floor area by around 24% and revise the layout of supporting equipment and services.

For residents following the various proposals, the important point is that the abandoned Mars Road proposal and the approved Apollo Place development are separate projects.

Three Lane Cove data centre proposals dropped

At one stage, four additional data centre developments were proposed for Lane Cove West Business Park, alongside AirTrunk’s existing facility. Since then:

• Goodman withdrew its proposed 90MW Project Mars data centre at 12 Mars Road in September 2026.
• The Lane Cove DC Alliance confirmed it would not proceed with its proposal at 16–20 Mars Road.
• AirTrunk has now confirmed it will not proceed with its proposed 140MW Mars Road development.

That leaves the approved Apollo Place development proceeding alongside AirTrunk’s existing SYD2 facility.

Parliamentary inquiry puts Lane Cove under the microscope

On 5 November 2026, the NSW Upper House Public Accountability and Works Committee tabled its report into data centres, containing 23 recommendations.

Lane Cove features prominently, including a case study examining the impact of data centre developments near homes, Lane Cove West Public School, childcare centres and bushland.

The inquiry heard evidence from Lane Cove Council, Clr Rochelle Flood Deputy Mayor of Lane Cove, the Lane Cove Responsible Planning Group and Voices of Bennelong about noise, diesel generators, water infrastructure, construction impacts and inadequate community consultation.

What did the inquiry recommend?

The committee found that data centres were being assessed individually, despite their combined impacts on surrounding communities.

The committee also criticised major technology companies, including AirTrunk, Amazon, Microsoft, Google and Meta, for declining or failing to respond to invitations to appear.

The Committee Chair Ms Abigail Boyd MLC said in her Chair’s foreword:

Its key recommendations include:

• Cumulative impacts: Greater consideration of the combined noise, electricity and water demands of multiple data centres.
• Strategic planning: Investigating designated data centre precincts with suitable infrastructure.
• Community consultation: Requiring developers and consent authorities to properly respond to substantive objections.
• Transparency: Establishing a public register of proposed and approved data centres, including resource demands.
• Diesel generators: Stronger measures to reduce reliance on diesel backup generation.
• Renewable energy: Requiring data centres to meet their energy demand through 100% renewable electricity, matched hourly.

No moratorium recommended

Lane Cove Council and Penrith City Council called for a moratorium on new data centre approvals.

Committee Chair Ms Abigail Boyd MLC supported a pause until stronger safeguards were introduced, but the other committee members opposed this recommendation.

As a result, the final report does not recommend a moratorium.

What happens next?

The NSW Government must now consider the inquiry’s recommendations but is not obliged to implement them.

For Lane Cove residents who have spent months questioning the rapid expansion of data centres, three abandoned proposals represent a significant change in the local landscape.

The bigger question remains: will the NSW Government introduce stronger planning safeguards, or will communities keep fighting data centre proposals one development at a time?

A Government response does not itself implement the recommendations. It states what the Government proposes to do. Action, including legislative or regulatory change, follows only if the Government takes that step separately.

The Government is not obliged to accept any inquiry recommendation.

AirTrunk provides more information

In the Cove has previously reported that the AirTrunk website did not include all the documentation that was required to be uploaded as per their development consent obligations.

AirTrunk has now responded by updating their website and providing further information about the development. Their website notes:

AirTrunk says residents can obtain updates about its existing SYD2 facility and Stage 5 works by emailing [email protected] or calling (02) 9953 4780. The dedicated page for the Lane Cove Data Centre is here.