The developer had proposed the Harvest Wind site be built across Cass and Miami counties in the north of the state.
However, it is now no longer pursuing the project, citing "technical circumstances for the project have changed unfavourably, making the project no longer feasible."
RES Americas told Windpower Monthly it had "based the decision primarily on interconnection issues".
Public opposition to the project — including concerns over setback distances and insufficient tax breaks — had preceded the cancellation, according to Indiana newspaper, the Pharos Tribune.
Turbines were to be placed at least 300 metres from properties not hosting part of the site on its land, and at least 500 metres from occupied houses, according to project documents.
However, the local new2640spaper reported residents had demanded setbacks of at least 800 metres from non-hosting property lines, claiming the distance was necessary to "preserve safety, property rights and quality of life".
An economic development agreement, authored by law firm Barnes & Thornburg, stated RES Group would invest $15 million locally, while residents would have property tax bills cut if development went ahead.
However, the Pharos Tribune said residents had indicated the economic development payments and decreased tax rates were "not worth it to tolerate the turbines".