Careers

Sustainable Data Centre Development: Summary and Policy Direction

James Rogers Jones & Pryderi ap Rhisiart
May 30, 2025

Introduction

On May 21st, 2025, M-SParc hosted a landmark event focused on the future of data centres in Wales. With a growing global demand for digital infrastructure, the event brought together businesses, policymakers, communities, and young people to explore a critical question: What does “good” and sustainable look like for data centre developments in Wales?

The event addressed sustainability challenges, international case studies, including lessons from Ireland and Norway, construction best practices, energy infrastructure, and how we embed economic and social value into these major infrastructure projects. Attendees were invited to contribute their views through an interactive board, with stakeholder perspectives captured in real-time.

This paper aims to take those insights and translate them into meaningful policy direction for the Welsh Government and political parties. It outlines a vision of how data centres can benefit Wales holistically—economically, environmentally, and socially—and presents a framework for national, regional and local strategy alignment.

Abstract

M-SParc’s “Smart & Sustainable Data Centres” event, held on May 21st, 2025, brought together stakeholders from business, government, communities, and young people to explore what “good” looks like for data centre developments in Wales. With demand for digital infrastructure accelerating, the event focused on ensuring that developments are not only technologically advanced but also environmentally sustainable, economically beneficial, and socially inclusive. Key takeaways included the need for local supply chain integration, the reuse of waste heat for community benefit, investment in skills to retain young talent, and urgent policy alignment at local, regional, and national levels. A strong call emerged for Wales to act strategically and collaboratively to shape data centre growth that delivers lasting value for all stakeholders.

What Does “Good and Sustainable” Looks Like? Stakeholder Perspectives

1. Business Community Perspective

Local economic integration: Data centres must offer more than short-term construction jobs. The entire lifecycle—design, build, operation, maintenance—should benefit Welsh businesses.
Supply chain opportunity: Prioritise local procurement where possible, for everything from architecture to professional services.
Innovation catalyst: Use data centre developments as a springboard to support local startups and businesses, particularly in clean tech and digital sectors.
Talent retention: Ensure high-value operational roles (not just manual or service-based) are based in Wales—particularly Anglesey.
Energy vision: Wind, solar and tidal power should be central to powering these centres, showcasing Wales’ green credentials.

2. Community Perspective

Heat as a community asset: Reuse waste heat to warm homes or community facilities like swimming pools.
Energy security: Local communities must not be deprived of power in favour of data centres—energy access must be equitable.
Energy Balancing: Ensure that data centres act as grid-positive assets by supplying surplus power or leveraging on-site generation to support the local grid during periods of high demand or shortfall. This helps stabilise the energy system and enhances local energy resilience.
Retain profits locally: Establish models (e.g., community ownership or shared dividends) to ensure value stays within the region.
Learn globally, act locally: Take the lessons learnt from countries who have a history of data centre development, such as Ireland, Germany, and Norway to avoid negative consequences. Incorporate ‘best practice’ legislation being applied elsewhere in Europe (such as Germany’s 20% waste heat utilisation by 2030 legislation – the EnEfG, Germanys adoption of the EED)
Enable community innovation: Support community-led modular data centres or heat networks with partners like Octopus Energy.

3. Young People’s Perspective

Future opportunities: Data centre development must enable young people to stay in North Wales, with meaningful, high-skilled jobs.
Prevent brain drain: Encourage education pathways in relevant areas—AI, IT, infrastructure, sustainability.
Early engagement: Raise awareness in schools and colleges about digital careers to build a future-ready workforce.
Data Centre Adjacent Careers: Build an awareness of the skills and roles that can develop around data centre hubs, such as tech start ups, renewable energy, and engineering.

4. Government Perspective

Quality jobs: Focus on high-value employment, not just temporary roles.
Grid considerations: Avoid overburdening the grid (as seen in Ireland); invest in renewables and storage.
Learning from Norway: Use successful models like Norway’s integrated energy-use approaches and community benefit strategies.
Heat and co-location: Link data centres with food production, district heating, or energy innovation zones.
Digital leadership: Establish an AI Centre of Excellence or AI Growth Zone in North Wales.
Nuclear synergy: Leverage data demand to support new nuclear at Wylfa.
Well-being alignment: Align developments with the Well-being of Future Generations Act.
Urgency and agility: Government must move faster; digital change is outpacing policy.
Strategic land use: Prioritise green infrastructure and digital developments.
Education & innovation: Embed courses, apprenticeships, and applied R&D in the strategy.

Key Policy Considerations for Wales

This paper offers a vision for what “good” and sustainable data centre development can look like when stakeholders are united. Wales has a unique opportunity to lead the way in smart, community-benefiting infrastructure, but only if we act strategically.

Key Recommendations for Policymakers:

Develop a national strategy for data centres that aligns with local and regional plans.
Embed community benefit models, from shared ownership to heat reuse schemes.
Maximise local economic benefit by prioritising local supply chains and operational jobs.
Create skills pipelines through early education, training, and HE/FE alignment.
Devolve land and energy powers to enable strategic digital and energy infrastructure use.
Use international best practice to avoid negative outcomes seen elsewhere.
Integrate sustainability at every level—from planning through to operation and eventual reuse.
Coordinate regionally—Wales must not act in isolation. Collaboration between Welsh Government, local authorities, enterprise zones, and community partners is key.
Lobby the UK Government to adopt a national data centre sustainability framework, learning from EU EED challenges and building on strong models like Germany’s 20% waste heat reuse target.