The First Flight consortium, comprising Dong Energy, RES and B9 Energy, said delays to Northern Ireland's electricity policy framework meant the project could not be built within the required timeframe.
The site is located eight kilometres off the County Down coast in the Irish Sea and was due to be operational by 2020. Under new market rules it would have needed to be operational by 2021 at the latest.
In a statement the consortium said: "The company has made significant progress in establishing the feasibility of the project off the coast of Co. Down.
"However, as a result of delays to the design of the new market and renewable incentive arrangements for Northern Ireland, First Flight Wind has concluded that the project can no longer be built in the timeframes likely to be required under the new market rules. As a result, it is not going to be possible to continue with further project development and consent-related activity."
The project had already been scaled back from 600MW to reduce the impact to shipping and fishing activities.