Communities secretary Eric Pickles has blocked the £450m Coventry & Warwickshire Gateway scheme near Coventry Airport.
Coventry city and Warwick district councils and the local LEP had all backed the 3.6m sq ft project.
The Coventry & Warwickshire Development Partnership joint venture is made up of Coventry Airport and shed developer Roxhill.
Coventry and Warwickshire chamber of commerce president Peter Burns said: “We are genuinely shocked by this decision and it is completely at odds with the government’s policy on localism and economic growth.
“This development has the support of the LEP, the local authorities in the area and the business community through the chamber and was predicted to create in the region of 10,000 jobs.”
Eric Pickles called in the 200-acre project in July 2013.
