Buffalo Betrayed? State Lawmakers React to Tesla’s Reported Pullback from $500M Dojo Project

By Ronald Kapper
Published: August 15, 2025

BUFFALO, NY — New York state lawmakers are raising alarms over Tesla’s reported decision to withdraw from its marquee $500 million Dojo supercomputer initiative intended for the Gigafactory New York in South Buffalo. The cancellation, confirmed in early August, has prompted sharp reactions from political leaders concerned about economic consequences and the erosion of promised tech investment.

What Reportedly Happened

On August 11, 2025, Tesla informed local officials of its plans to halt the development of the Dojo AI training center at the Riverbend facility, part of the Buffalo “Gigafactory.” The project had been a central component in Governor Hochul’s tech-focused economic revitalization plan and promised to transform the region into a high-performance computing hub.WGRZStartupNews.fyi

State legislators responded with disappointment. Assembly Majority Leader Crystal Peoples-Stokes labeled the withdrawal a serious setback for Buffalo’s recovery efforts, while Senator Sean Ryan warned it could diminish the state’s credibility in future public-private tech agreements.WGRZ

Economic and Political Fallout

Tesla’s pivot carries significant implications. The Dojo facility was expected to generate hundreds of jobs and reinforce Buffalo’s emergence as a tech corridor. Its cancellation slashes anticipated economic gains and raises questions about the reliability of corporate commitments tied to government incentives.

State officials are now evaluating Tesla’s lease terms and investment agreements. Discussions surrounding clawback provisions—penalties imposed if Tesla fails to meet promised economic benchmarks—are underway. Though details remain under negotiation, leaders emphasize that alternative strategies are required to sustain momentum in Western New York’s post-industrial transition.

Background: Gigafactory New York and the Dojo Promise

The Gigafactory New York, built on the reclaimed Riverbend brownfield site, was established under Gov. Cuomo’s "Buffalo Billion" initiative. Tesla began production of solar panels and Superchargers at the site, with community expectations that high-tech investments would follow.Wikipedia

The Dojo project, announced in January 2024, was positioned as a centerpiece of Buffalo’s economic resurgence. Tesla committed to extending its lease and increasing employment through 2034, while state entities anticipated substantial returns on that public-private venture.

Looking Ahead: Regional Resilience

As Tesla steps back, state lawmakers are exploring contingency plans. Proposals include redirecting incentives to attract alternative high-tech partners, bolstering innovation infrastructure, or repurposing Gigafactory assets toward emerging sectors such as advanced manufacturing or AI.

In the meantime, Tesla’s future role in Buffalo remains uncertain. Will it reinvest in the region in other capacities, or will officials need to pivot entirely to protect the region’s economic prospects? That verdict is expected in the weeks ahead.

Quick Summary

• What happened: Tesla reportedly canceled its $500 million Dojo supercomputer project at Buffalo’s Gigafactory on August 11, 2025.

• Reactions: State lawmakers, including Crystal Peoples-Stokes and Sean Ryan, express alarm over lost investment and regional promise.

• The impact: Economic and reputational consequences for Buffalo; renewed calls for enforceable agreements and alternative development strategies.