Why Connectivity Must Underpin Wales’ Next Chapter of Growth

Beyond its rural communities, rolling hills and picturesque coastline, Wales is home to a growing base of ambitious businesses and high-value industries. To sustain that growth and unlock what comes next for Wales, businesses and communities need strong digital infrastructure to succeed.

The UK Government’s recent commitment of up to £20 million through the Local Innovation Partnership Fund for South West Wales is a hugely positive and important signal of economic growth and capital intent. Investment in energy and materials security has the potential to unlock new industries, strengthen supply chains and accelerate Wales’ role in the industries of the future.

But ambition alone will not deliver growth. To fully realise the value of this investment for Wales, digital infrastructure must now be treated as essential national infrastructure, on a par with transport and energy, rather than an afterthought. High-quality connectivity that supports modern industry, public services and communities are critical to delivering real outcomes.

Communities, public and private services stand to benefit

For years, infrastructure debates have focused primarily on roads, rail, power and housing. Increasingly, however, economic competitiveness depends just as much on reliable, secure and resilient connectivity for Wales. Businesses rely on resilient networks to operate efficiently, public services depend on digital systems to deliver effectively, and communities expect seamless access to work, education and healthcare wherever they are across Wales.

This matters particularly for Wales, where regional economies and rural communities risk being excluded if digital infrastructure does not keep pace. Without action, connectivity gaps will continue to limit opportunity, reinforce inequality and create a two-speed Wales.

Connectivity, therefore, cannot remain a secondary consideration. It needs to sit at the centre of economic growth, enabling faster, fairer public services and stronger local economies.

Across Wales there are already key growth sectors emerging, from clean energy in South West Wales and advanced manufacturing in the North to Cardiff’s fintech sector. But these industries depend on real-time data, cloud platforms and connected systems that only high-capacity, resilient networks can support at scale.

The same is true for public services. Better connectivity can unlock faster decision-making, more efficient operations and safer, more responsive services from transport and utilities, to healthcare and local government.

The potential of AI

AI has the potential to improve productivity, accelerate innovation and transform sectors across Wales. But its success depends on the infrastructure beneath it. AI systems require fast, secure and resilient connectivity capable of supporting increasingly data intensive workloads. Without that foundation, adoption will remain uneven and the economic benefits harder to scale across Wales.

This is why digital infrastructure can no longer be treated as a standalone technology issue. For Wales, it underpins economic resilience, competitiveness and long-term productivity.

State of play

Encouragingly, there are already positive signs of progress for Wales. VodafoneThree is investing £605 million in network infrastructure across Wales to strengthen coverage and accelerate the rollout of 5G.

This investment will deliver near-universal population coverage and improved rural connectivity enabling faster, more reliable public services from day one, fairer access for citizens and better conditions for businesses to grow and innovate.

It is expected to generate £4 billion in economic benefits for Wales by 2035, supporting jobs, skills and supply chains, and keeping more value within the Welsh economy.

But while this progress is important, there is more to do. To fully capitalise on this investment for Wales, connectivity must now be embedded at the heart of economic planning.

So what action should be taken

If Wales is to realise the full benefits of future investment, connectivity must sit at the centre of economic and infrastructure planning.

First, digital infrastructure must be embedded into growth strategies for Wales, alongside transport and energy. It enables immediate impact today while supporting long-term economic strength.

Second, investment must focus not only on coverage, but on resilience, performance and future scalability ensuring networks can support the next generation of services and industries.

Third, collaboration between government, industry and local authorities must ensure investment reaches every part of Wales, from urban centres to rural and hard-to-reach communities, so no region is left behind.

Wales has the innovation, industrial capability and ambition to compete in the next economy. The opportunity now is to build the connectivity needed to power stronger public services, more inclusive communities and long-term economic resilience.