As artificial intelligence (AI) continues to reshape the global economy, the energy sector is undergoing a profound transformation—one that is being driven as much by the insatiable power needs of data centers as by the world’s push toward cleaner and more reliable sources of electricity. Two parallel stories are unfolding: a surge in natural gas infrastructure, with companies like Enerflex leading the charge, and a dramatic resurgence in U.S. nuclear power, fueled by policy support and the promise of carbon-free, always-on energy for the digital age.
According to a recent report published by Bloomberg Intelligence, U.S. nuclear capacity is projected to rise by 63% to 159 gigawatts by 2050—a $350 billion-plus build-out that’s being propelled by the hunger of AI data centers for reliable, carbon-free energy. Policy incentives, narrowing cost gaps with renewables, and the scaling of small modular reactors (SMRs) after 2035 are all expected to play pivotal roles in this nuclear renaissance. Meanwhile, natural gas remains firmly at the center of the energy transition, with Canadian infrastructure firm Enerflex (EFL) positioning itself as a disciplined, cash-flow-positive play on the megatrend.
Enerflex’s 2025 capital expenditure plan is a textbook example of targeted investment. The company has earmarked $120 million for the year, with half—$60 million—dedicated to growth opportunities focused on the U.S. contract compression business, particularly in the Permian Basin. This region is experiencing a production renaissance, and Enerflex’s contract compression services, which help maintain pipeline pressure for natural gas production, are thriving. By the end of 2025, Enerflex expects its North American contract compression fleet to exceed 475,000 horsepower, up from 456,000 horsepower in the second quarter of 2025. With a 94% utilization rate and a 74% gross margin before depreciation and amortization, the company’s compression business is a cash-flow engine (AInvest).
Financial discipline underpins Enerflex’s strategy. By the second quarter of 2025, the company had reduced its net debt from $763 million a year earlier to $608 million, lowering its leverage ratio to 1.3x. This improvement was driven by strong adjusted EBITDA of $130 million and disciplined cash flow management, which also enabled Enerflex to extend its secured revolving credit facility to July 2028. The remaining $60 million of its 2025 capex is allocated to maintenance and asset reliability, ensuring that existing infrastructure remains competitive and resilient against market volatility (AInvest).
Enerflex’s high-margin compression services, with a 74% gross margin, provide a hedge against the price swings of oil and gas commodities. As AI-driven energy demand accelerates—data centers are projected to consume 12% of U.S. electricity by 2028, up from just 4% today—the company’s role in enabling efficient gas production becomes increasingly valuable. The U.S. Energy Information Administration (EIA) forecasts natural gas demand to grow by 1.5% annually through 2030, driven by power generation and industrial uses. Enerflex’s growth investments in the Permian Basin are perfectly aligned with this trend, and its $1.5 billion secured contract backlog in its Energy Infrastructure product line provides the visibility to invest with confidence (AInvest).
But natural gas is just one side of the energy transition coin. On the other, nuclear power is mounting a comeback, with AI data centers acting as unlikely—but powerful—catalysts. According to Bloomberg Intelligence, net U.S. nuclear capacity may climb by 52 gigawatts from 2036 to 2050, a 2.7% compound annual growth rate. Most of these additions are expected after 2035, as SMRs finally begin to scale. In the nearer term, U.S. nuclear capacity is set to grow by almost 9 gigawatts through 2035, reaching just over 106 gigawatts, with early gains coming from upgrades at existing plants, restarts of retired units, and the completion of abandoned V.C. Summer reactors in South Carolina.
Three planned restarts could add about 2.3 gigawatts by the end of this decade: Holtec Palisades (0.8 GW, expected this year), Constellation’s Three Mile Island Unit 1 (0.8 GW, 2027), and NextEra’s Duane Arnold (0.6 GW, 2028). Santee Cooper is seeking buyers to finish the two V.C. Summer units (1.1 GW each), though they likely won’t come online before the early 2030s. The recently completed Vogtle plant in Georgia, the first U.S. nuclear project finished in five decades, took 15 years to build and came online in 2023–24, with an estimated cost of $13,876 per kilowatt (Bloomberg).
The scale of investment required for this nuclear build-out is staggering. Bloomberg Intelligence projects that building 63 GW of additional U.S. nuclear capacity by 2050 could cost $354 billion, with initial build times of 10 years at $10,000 per kilowatt, improving to five years and $5,000 per kilowatt by 2048 as efficiencies scale. The Trump administration’s recent executive orders have signaled strong government backing, calling for streamlined reactor licensing and setting a 400-GW nuclear target by 2050. Federal loan guarantees, such as the $15 billion provided for the Vogtle reactors, will be critical to addressing high costs, construction risks, and supply-chain constraints (Bloomberg).
Policy support remains key to unlocking private capital for new nuclear capacity. While tax incentives preserved under the Trump administration’s tax and spending law have helped, additional measures will be necessary to bridge the gap. The cost differential between nuclear and renewables is expected to narrow substantially after 2027, when key solar and wind tax credits under the Inflation Reduction Act are set to expire. Currently, nuclear stands as the priciest dispatchable option—26% above combined-cycle gas—but its emissions-free nature adds unique value to the grid (Bloomberg).
Despite these bullish projections, not everyone agrees on the nuclear outlook. The EIA’s Annual Energy Outlook forecasts U.S. nuclear capacity to drop to 90.7 GW in 2050 from 97.6 GW in 2024, driven by reactor retirements and assuming no plant upgrades. In contrast, Bloomberg Intelligence projects a 1.9% CAGR, fueled by demand for clean, reliable electricity from AI data centers and robust government support. Multiple states are considering new reactors, and companies like Constellation plan to pursue new plants in regions such as upstate New York, where they already have a presence (Bloomberg).
For investors and policymakers alike, the message is clear: The intersection of AI, energy security, and decarbonization is reshaping America’s energy landscape in real time. Enerflex’s disciplined approach to natural gas infrastructure, with its focus on capital efficiency and high-margin services, offers a model for how to thrive amid volatility and structural change. Meanwhile, nuclear power’s resurgence—spurred by policy and the relentless growth of AI data centers—signals a new era for carbon-free baseload generation.
As these trends accelerate, the companies and technologies that can balance growth, resilience, and sustainability will define the next chapter of the energy transition. In a world where the lines between digital innovation and energy security are blurring, both natural gas and nuclear are poised to play starring roles.
