Rep. Gabe Vasquez Backs Data Center Moratorium in Grant County, Champions Two Bills to Protect New Mexicans from Data Center Costs

September 16, 2026 Press Release New legislation would end sweetheart tax breaks for data centers & force developers to cover their own electricity costs WASHINGTON, D.C. – Today, U.S. Representative Gabe Vasquez (NM-02) announced a suite of new actions to address New Mexicans’ concerns about rapid data center development. He voiced his support for a data center moratorium in Grant County and championed two new bills — one of which passed out of the House on Wednesday — to stop developers from steamrolling their way into local communities by forcing working families to subsidize massive data center construction projects. Vasquez released the following statement in support of a data center moratorium in Grant County : “I’ve heard continuous and serious concerns from folks on both sides of the aisle in Grant and Hidalgo Counties about a large, out-of-state, private equity firm coming to town and trying to build a massive data center in their communities — all while failing to provide basic details to local residents and elected officials. These concerns are valid, and I share them. The current proposal lacks basic transparency about how much water and electricity the facility would consume, and it raises real concerns about air pollution from its use of 32 natural gas-fueled generators. There are also concerns that this project would generate excessive light pollution, impact the Continental Divide Trail, and alter the rural landscape significantly — degrading qualities that make this part of New Mexico so special. Grant and Hidalgo County residents deserve clear answers and a meaningful say before a project of this scale moves forward in their backyard. I stand with local residents and leaders in calling for a temporary moratorium on data centers in Grant County so the community has more time to understand the short- and long-term impacts of this proposal.” The scant details the developer has provided about the proposed project in Grant County are quite concerning. The public notice estimates the facility could use roughly 2.3 million cubic feet of natural gas per hour, about the same amount needed to power 900 homes for an entire year, and its yearly carbon emissions could also equal the emissions produced by roughly 282,600 cars. Vasquez also voted in support of the Ratepayer Protection Act , which passed out of the House on Wednesday with support from both Republicans and Democrats in Congress. The bill directs state utility regulators to consider protections that would ensure large data centers and other major electricity users cover the additional infrastructure costs needed to serve them, rather than shifting those costs onto families and small businesses. Today, Vasquez also introduced the Reverse Big Ugly Tax Breaks for Data Centers Act , legislation he is leading to end two major tax breaks for large data centers included in the One Big Beautiful Bill Act. Specifically, Vasquez’s bill would revoke tax breaks that made large data centers eligible for the 100 percent bonus depreciation deduction and Opportunity Zone tax benefits. These corporate tax breaks were paid for by sweeping cuts to healthcare and food assistance for working class Americans made under the One Big Beautiful Bill Act, the Republican tax law. “Questionable data center developers are striking murky deals in rural communities across the country, locking in sweetheart deals without public input or transparency. They purposefully withhold information about their water use, emissions, and electricity costs — all while they actively get tax breaks passed by MAGA extremists’ in the Big Ugly Bill that were offset by cuts to healthcare and food assistance for hardworking Americans,” said Vasquez . “I’m proud to lead this bill to end these tax breaks. Wealthy data center developers and their backers shouldn’t be subsidized by taxpayers and ratepayers as New Mexicans struggle to make ends meet in a worsening economy.” Vasquez’s work to protect New Mexico families from higher costs, pollution, and other data center harms includes : A Victory in Socorro : Earlier this year, after residents on both sides of the aisle in Socorro County raised serious concerns about a proposal to build one of the largest data centers in the world in their backyard, Vasquez was the only statewide or federal official to stand with residents and publicly call for an end to the proposal . In response to Vasquez’s public leadership, the foreign company behind the proposal pulled out, and Socorro County commissioners unanimously approved a one-year moratorium to give the community time to develop appropriate safeguards. Vasquez is championing the FAIR Data Act and the Data Center Water and Energy Transparency Act to protect families and small businesses from higher utility bills and require data center developers to disclose how much water and electricity their projects consume. Rep. Vasquez is an original cosponsor on the Energy Bills Relief Act , which includes a provision directing states to enact policies to protect consumers from utility rate increases stemming from data center energy demands. Rep. Vasquez signed onto an appropriations letter during the FY27 appropriations process that requested the inclusion of report language directing the Department of Energy to develop a National Strategic Data Center Plan to guide the responsible growth of data center infrastructure across the United States. ### Issues : Environment & Conservation Keeping Energy Costs Down