Goodman Group, one of Australia’s 20 largest listed companies, has withdrawn its application for a A$1.2 billion ($841.9 million) data centre in Sydney’s Lane Cove suburb. In a letter to the NSW Department of Planning on Monday, it said it “will not progress with the development application.”

The 90-megawatt facility, known as Project Mars, would have stood about 20 metres (65 feet) from nearby homes. Residents opposed it over its environmental footprint, energy and water use, power bills and noise pollution.

Goodman said “the policy and regulatory environment for large-scale data centre development has evolved significantly.” During a Senate inquiry last week, it conceded the project had failed to win a “social licence,” after a lawmaker accused it of showing contempt for local residents.

The decision comes as data centre projects face growing scrutiny over energy and water consumption across Australia.

The withdrawal is one of the clearest examples yet of grassroots opponents blocking a data centre in Australia.