Plans for a new prison to be built in Port Talbot have been unveiled by the Ministry of Justice.
The development is likely to be on land in the Baglan area, it is understood.
Aberavon AM David Rees said: "It will bring jobs and we must welcome that but we must also be cautious as to the implications of it on the communities."
He continued: "Local businesses have a chance to grow from this. Maybe when visitors come we'll have opportunities for cafes and taxis to benefit. It's an opportunity we cannot afford to miss and those jobs are important to us.
"We also need to make sure the site is the appropriate site - that the safety of the communities around the site is catered for and that communities feel comfortable with what is being built."
Mr Rees added: "We need to speak to communities and I've written to the ministry to ask that a full consultation takes place - they've told me there will be and that will be a chance for people to give their views on this development."
Neath Port Talbot council's chief executive, Steven Phillips said: "The council hasn't received any planning application from the Ministry of Justice but any application it receives will be dealt with in the normal way, which will include a full consultation with the local community."
A new prison will also be built at Full Sutton, in Yorkshire, with existing sites in Hindley, Wigan, and Rochester, Kent, redeveloped.
It is part of the UK government's commitment to creating up to 10,000 modern prison places by 2020, backed by £1.3bn to transform the estate.
Last month HMP Berwyn opened in Wrexham - the UK's biggest prison.
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