"While disappointing, this setback will not dampen our enthusiasm for future projects in Ireland as our business continues to grow", Apple said in a statement.
Construction of the first phase of eight promised to generate 300 temporary jobs, with up to 150 permanent staff required to run it.
Today's news will be seen as blow for the residents of Athenry who hoped that the data centre would not only create jobs, but lure more high tech investment to the area.
The project, which was first announced three years ago, would have been the biggest private investment in western Ireland.
But the campaigners won last week their Supreme Court bid for their appeal to be heard, delaying the process even further.
It's not known how many jobs were lost with the canceling of the data center, but, in a statement, Ireland's Minister for Business and Enterprise Heather Humphreys said, "There is no disputing that Apple's decision is very disappointing, particularly for Athenry and the West of Ireland".
The Irish government last month said it was signing a deal for the U.S. tech giant to pay 13 billion euros in back taxes as ordered by the European Commission, which said it had received favourable terms that amounted to state aid. This included high-level engagement with the company, both at home and overseas.
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She said the delays underlined the need to make the state's planning and legal processes more efficient. The Government has therefore already been working, over the last number of months, to make improvements to those processes.
Apple has ditched proposals to build an €850 million ($1 billion/£742 million) Irish data centre after planning delays.
Speaking with The Independent, a company spokesperson said...
But he added they were trying to stay positive and focus on how the site Apple had designated for its data centre could be developed.
"We're deeply committed to our employees and customers in Ireland and are expanding our operations in Cork, with a new facility for our talented team there".
Work on a new four-storey office block at the Hollyhill campus, which serves as the company's European headquarters, is expected to be completed shortly.
"The people of Athenry have marched, they've protested, they have shown that they are open for Apple, and yet again the people of Athenry have been let down this morning".
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