Bear River Launches as AI’s Thirst for Power Revives Gas Infrastructure

HOUSTON, TX – June 30, 2026 – In a move that signals a powerful convergence of technology and traditional energy, Bear River Midstream officially launched today as an independent natural gas storage company. The new entity was formed from I Squared Capital’s $650 million acquisition of Spire Inc.’s storage assets, a transaction that does more than just change the name on the letterhead—it plants a flag firmly in the ground, betting that the future of energy reliability runs through legacy infrastructure revitalized for a new era of demand.

Backed by the financial might of I Squared, a global infrastructure investor managing over $60 billion, Bear River Midstream now controls a strategic portfolio of natural gas storage facilities in Wyoming and Oklahoma. This isn't a speculative venture into a sleepy corner of the energy market. It is a direct response to some of the most powerful growth signals in the modern economy: the voracious energy appetite of artificial intelligence and the unceasing expansion of U.S. liquefied natural gas (LNG) exports.

A New Player in a High-Stakes Market

Bear River Midstream emerges as a focused, independent operator controlling two key assets. Spire Storage West, near the crucial Opal Hub in Wyoming, has been rebranded as Stallion Gas Storage. This facility is a behemoth, with 55 billion cubic feet (Bcf) of working gas capacity and connections to five major interstate pipelines, giving it unparalleled access to markets in both the West and East. The second asset, now named Salt Plains Gas Storage, is a 17 Bcf capacity facility in Oklahoma, serving the vital Mid-Continent region.

The launch follows Spire Inc.’s strategic decision to divest these non-utility assets to concentrate on its core regulated natural gas business. For a total consideration of $650 million, Spire passed the torch to I Squared Capital, which sees not just operational assets, but a platform ripe for growth. For customers, the company has promised a seamless transition, with contracts and operational teams remaining in place.

“Bear River Midstream is launching at a time when demand for reliable and flexible energy infrastructure is growing,” said CEO Scott Smith in a statement. He pointed directly to the drivers: “accelerating power needs from AI technology data centers, expanding LNG exports and load growth across utility, commercial and industrial markets.”

Riding the Wave of Unprecedented Demand

Smith’s comments are not hyperbole; they are an acknowledgment of a seismic shift in energy consumption. The growth signal from the tech sector is particularly deafening. Independent analysis projects that electricity consumption from data centers, the backbone of the digital world, is on track to double by 2030. Within that, the power required for AI-specific workloads is expected to triple, potentially increasing overall U.S. data center energy demand by 130% in the same period.

This digital boom creates a physical-world challenge: securing enough power. Natural gas, as a flexible and dispatchable power source, is increasingly called upon to fill the gaps and provide the baseline power these massive facilities require. Simultaneously, the global appetite for American energy continues to surge. The U.S. Energy Information Administration (EIA) projects that U.S. LNG exports, which have already reshaped global energy flows, will grow by nearly 30% by 2027 as new liquefaction facilities come online. This places immense, sustained demand on the domestic natural gas supply chain.

It is within this context that the strategic value of natural gas storage becomes clear. Storage facilities like those now operated by Bear River act as the system’s shock absorbers, injecting supply into the market during demand spikes—whether from a heatwave driving up air conditioning use or a data center cluster coming online—and storing excess gas during periods of low demand. They are the critical link that ensures stability in a high-demand, high-volatility environment.

The Grid's Unsung Reliability Anchor

While Bear River Midstream, with its combined 72 Bcf of capacity, is a new name, it enters a field of established giants. Competitors like Enbridge and Kinder Morgan operate vast networks with storage capacities reaching 624 Bcf and 704 Bcf, respectively. Yet, the market is far from saturated. Industry experts note that while U.S. natural gas demand has climbed steadily, investment in new storage capacity has not kept pace. This makes the entry of a well-capitalized and focused player like Bear River a significant development.

These assets are more than just commercial tools; they are essential components of national energy security. As the power grid integrates more intermittent renewable sources like wind and solar, the role of natural gas storage as a reliability anchor only grows. When the sun isn’t shining or the wind isn’t blowing, storage facilities can rapidly dispatch gas to power plants, preventing blackouts and stabilizing the grid. According to one energy analyst, “Without adequate storage, the energy transition becomes exponentially more difficult and expensive. It’s the infrastructure that enables everything else.”

I Squared Capital’s playbook appears to recognize this fundamental importance. The firm has a history of investing in and scaling essential infrastructure, from hydropower platforms to natural gas pipelines. Their acquisition of the Spire assets and the formation of Bear River Midstream is a calculated bet on the enduring need for physical infrastructure to support both the digital economy and the global energy transition. The firm’s leadership has explicitly pointed to the “expansion potential” of the platform.

However, any future expansion will have to navigate a complex regulatory landscape. Building new or expanding existing natural gas storage requires rigorous approval from the Federal Energy Regulatory Commission (FERC) and state environmental bodies in Wyoming and Oklahoma. These processes involve intense scrutiny of geological stability, potential methane emissions, and local community impact, often presenting a lengthy and challenging path forward for operators. Bear River Midstream’s success will depend not only on its ability to capitalize on market demand but also on its skill in managing these significant regulatory and environmental hurdles.