Why is natural gas experiencing a 'renaissance' in North America's power sector, according to KKR's Brandon Freiman?

Natural gas is experiencing a 'renaissance' because a surge in electricity demand from artificial intelligence and data centers is reshaping North America’s power markets, moving the sector from years of flat demand into a new growth cycle — with AI emerging as one of the clearest drivers. Freiman stated this shift makes owning merchant gas-fired generation 'one of the clearer ways to express an AI bet on infrastructure,' as investors can gain exposure to AI-driven power needs without selecting specific AI models or semiconductor companies.

What has changed about the financing and development model for new natural gas-fired power plants, and why?

New gas-fired plants have become significantly more capital intensive — costs have risen from about $1,000 per kilowatt to closer to $3,000 per kilowatt — making it unlikely developers will build without long-term contracts. This shift is pulling more activity into private markets, where large infrastructure investors can finance projects backed by hyperscalers and other major customers, as public markets are seen as ill-suited for industries undergoing massive capital-intensive inflections.

AI Power Boom Revives Natural Gas as Infrastructure Bet

Jun 4, 2026

KKR partner Brandon Freiman notes AI-driven electricity demand is reviving North American natural gas infrastructure, though rising construction costs are shifting financing toward private markets and long-term contracts.

bloomberg

2026-06-04

AI Power Boom Revives Natural Gas as Infrastructure Bet

AI Power Boom Revives Natural Gas as Infrastructure Bet

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