How Wales Can Become the UK’s Tech Powerhouse

By Mark Sweeny, Founder and Group CEO of de Novo Solutions

Wales has a rare opportunity to establish itself as one of the UK’s leading technology economies. In this comment piece, Mark Sweeny outlines how entrepreneurial momentum, AI investment, and stronger collaboration between industry, education and government could help Wales build a distinctive and lasting tech identity:

Around the world, regions become known for what they do best — Detroit for cars, Hollywood for film, and Silicon Valley for tech. Wales now has the chance to add its name to that list, continuing its rise to become a powerhouse in the world of tech, and in particular AI.

The last few years have already seen an influx of companies choosing to launch or relocate here and this has naturally created a snowball effect. That momentum is contagious — every new success story inspires others to follow.

Why Wales?

Start-up registrations in Wales have risen by 25% each year according to research from R3, signalling a surge of entrepreneurial confidence – much of it tech-led. Those companies are no doubt partially drawn to the country due to the wealth of support available such as the Business Wales support programme, Development Bank of Wales investment, and organisations like FinTech Wales.

The Welsh Government has taken steps such as opening a specific department focused on AI and forming a strategic AI advisory group, while two of the four confirmed UK Government AI Growth Zones will be located in Wales – one in the North and one in the South – with ministers promising they will collectively deliver more than 8,400 extra jobs.

And there’s certainly no lack of local talent. The Higher Education Statistics Agency reported 6,300 graduates had obtained a degree in computing or engineering and technology in 2024, with more expected to have done so last year. Companies based within Wales have a real opportunity to recruit and harness this talent, developing home-grown tech leaders of the future without the same level of competition for candidates as you might see in cities like London.

The future of tech

The next step is deeper collaboration between businesses, universities, and the Welsh Government, turning today’s graduates into the AI engineers, product designers, and data scientists who will define Wales’ tech identity. In a rapidly changing world, it can be difficult to predict exactly how advanced technology will become in the next few decades. But for young people looking to make their way into a tech career, there are some skills likely to come in extremely useful. Whilst coding and programming are often the focus when we think of ‘future proof skills’, there are other equally important areas of knowledge. Forming closer links between the private sector and the country’s schools and colleges should be a core focus going forward, to ensure our young people don’t just know how to use technology like apps and AI, but actually understand how it works. Whether it’s software programming or tech-powered designing, there are a wealth of options out there in the sector – and it’s important that young people are exposed to as many of these choices as possible to tempt even more of them into tech careers.

For new and existing tech enterprises, the ability to keep growing the sector as rapidly as we’d like depends on encouraging these skills and then attracting new talent into the sector. We have a fantastic community of leaders in Wales who have vast amounts of experience and knowledge – but these need to be passed on, not only to ensure all of the companies already thriving here can continue for decades to come, but also because of the richness of fresh ideas new talent often bring to the table. Those who have grown up in the digital age and can’t remember life before the internet certainly have a different perspective from those who recall dial-up, floppy discs and fax machines.

Attracting talent

Hiring new tech talent isn’t just about filling a vacant chair in the office, it’s an opportunity to shape a career, and each additional person goes a small way towards boosting the entire sector in Wales. That’s why apprenticeships and graduate programmes are integral if we are to fulfil the collective mission of becoming the Silicon Valley of the UK.

We must continue to promote Wales: the opportunities it provides given its thriving tech scene, but also all of the other wonderful things about living, working or studying here. In a world where more people are living at home with their parents into their late 20s and early 30s, there is an opportunity to attract those who in years gone by may well have moved out of the area to get on the career ladder. Mixing remote working opportunities with hiring local talent also enables leaders to accelerate the growth of their company, ensuring the right mix of skills across teams and bringing on board senior employees as well as entry-level recruits.

A 20% increase in the number of tech enterprises in the past five years, according to Government statistics, is a great start. But we need to continue that momentum going forward, ensuring the tech sector and the education sector work hand in hand, nurturing potential technology leaders of the future, and continuing to encourage entrepreneurs and funders to look to Wales. Because it’s only by having more (more companies, more funding, more recruits) and shouting about it more (which in turn attracts additional companies, funding and recruits) that we can hope to one day rightfully call ourselves the Silicon Valley of the UK.

Wales has momentum, from AI growth zones to record graduate numbers and a growing tech investor network. But to truly become the UK’s Silicon Valley, we must keep the flywheel turning: invest, connect, and inspire the next generation of digital innovators who will put Wales on the global stage.