David Dobbin, chief executive of Dale Farm, said his firm wanted to invest in a project in Cookstown, County Tyrone.
He said the investment already had planning approval but the correct energy facilities were not in place.
He told the BBC's Inside Business show it was "frustrating" to be told to move the project east of the river Bann.
"We want to put a £40m investment into Cookstown. We've got Invest NI support, we've government support, we've got our planning - we can't go," Mr Dobbin told the programme.
"We're waiting now until gas comes, because the electricity [suppliers] can't help us."
Dale Farm is Northern Ireland's largest dairy business.
The company produces and sells a wide range of dairy products throughout the UK and Ireland as well as exporting to more than 45 other countries worldwide.
Its goods include milk, cream, cheese, butter, dairy spreads, yogurts and desserts.
Mr Dobbin claimed Northern Ireland Electricity had suggested moving the Cookstown project to Ballymena, County Antrim, because there was "plenty of power there".
"So that's saying 'move your investment from west of the [river] Bann to the east because that's where our generators and that's where our grid is'," Mr Dobbin said.
"Economically we want to develop the west of the province and we're there already and we're creating valuable jobs, so it's frustrating for us."
Dale Farm is part of the United Dairy Farmers Group, a UK dairy farmer co-operative.
