Wales is rapidly emerging as a dynamic hub for artificial intelligence (AI) innovation, offering a compelling blend of ethical leadership, digital infrastructure, and international collaboration. For business leaders seeking to invest in future-ready economies, Wales presents a unique opportunity to be part of a region that is not only embracing AI but shaping its responsible use across sectors.
A National Commitment to Ethical AI
The Welsh Government is actively exploring how AI can transform public services, education, and healthcare. Through partnerships with organisations like the Centre for Digital Public Services (CDPS), Wales is building AI literacy across the public sector and promoting ethical, transparent use of emerging technologies. A key initiative is the adoption of the Algorithmic Transparency Reporting Standard (ATRS), which ensures the public can access clear information about how AI tools are being used in government decision-making.
In healthcare, AI is already being applied to improve cancer diagnostics, pain management, and operational efficiency. Meanwhile, in education, the responsible use of generative AI is gaining traction among educators and learners, with the potential to reshape how knowledge is delivered and accessed.
A Magnet for Data Infrastructure Investment
Wales has become one of Europe’s most attractive destinations for data centre (DC) investment. Its appeal lies in a combination of strong data connectivity, proximity to London, and a national commitment to achieving net zero by 2035. These factors have drawn major global players to the region:
- Microsoft is investing £2.5 billion to build three next-generation AI-enabled data centres in the UK, including one in Newport.
- Vantage Data Centers operates Europe’s largest hyperscale data centre in Wales and is developing a 10-centre campus on the former Ford engine plant site in Bridgend.
- Latos, a British firm, plans to build a 90MW AI-enabled data centre in Cardiff as part of a broader UK-wide rollout of 40 centres by 2030.
“There are many influencing factors,” said Michael Groves, Head of Digital Economy at the Welsh Government. “We have strong data connectivity in the region, we are just two hours from London, and the Welsh Government plans to achieve net zero by 2035. One of the reasons DC operators are attracted to Wales is the opportunity to partner core power grid infrastructure with stable supplies of renewable energy into the future”.
Strategic Strengths and Global Collaboration
Wales’ AI strategy aligns with the UK Government’s AI Opportunities Action Plan, which includes establishing AI growth zones and expanding AI research capacity. “Wales is actively participating in this selection process with commitment and high ambition,” said Groves. “We intend to contribute to further improving the UK's position in AI development”.
The region’s strengths extend beyond infrastructure. South Wales is home to key public digital assets such as the UK Intellectual Property Office, Office for National Statistics, Companies House, and the DVLA. These institutions, combined with rich healthcare data and a thriving compound semiconductor cluster, create fertile ground for AI innovation.
“In addition to the large number of DCs located here, the south Wales region is rich in public digital assets and is also blessed with data assets related to healthcare,” Groves explained. “We also benefit from complementary industries to the AI agenda, such as the compound semiconductor cluster”.
Academic institutions like Cardiff University are also playing a pivotal role. The Hartree Hub supports SMEs with AI and data analytics, while the Cyber Innovation Hub is advancing cybersecurity—both essential to the design and deployment of AI solutions.
A Global Invitation to Collaborate
Wales is open for business and actively seeking international partnerships to accelerate AI innovation and implementation. With a proven track record of hosting global technology leaders and a strong foundation in digital infrastructure, the region offers fertile ground for collaboration in areas such as chip design, AI solution development, and the industrial application of AI technologies.
“We welcome collaboration with companies and institutions from around the world,” said Groves. “Wales offers opportunities at various levels—from fine-tuning AI solutions to co-developing technologies that support data centres and the broader digital economy”.
