Any expansion of AI research and development in Wales would require investment by universities and government.
But the computing power required to process and host AI services would also need a power grid which isn’t currently available in all parts of Wales.
There have been considerable protests against plans to increase electricity grid capacity in mid Wales, due to the operator’s intention to erect pylons across rural areas.
“Mid Wales is chronically under-served by modern grid infrastructure,” said Stuart George, chief executive of Green GEN Cymru which is attempting to build the pylons.
Despite fierce opposition in some areas, Mr George argued the roll-out of a more reliable electricity grid was essential in order to supply existing and future demands.
“What we need to be better at is telling the story of the benefit that can come from this,” he said.
“There’s so much more benefit that comes from the modernisation of grid infrastructure.
“When you look at what the future will look like – electric vehicles, electric home heating systems. The ability for businesses to decarbonise and also grow and develop within mid Wales is currently impossible.”
Mr George warned Wales could “lose out” on the AI race if it did not have the infrastructure to attract data centres and research facilities, and said politicians needed to make difficult decisions.
Commitments to decarbonise the electricity supply meant “the grid infrastructure that is required to unlock that renewable energy is an inevitability, and that means that they have to make the big decisions and they have to make them quickly”.