In this crosscurrent contribution, we approach the notion of welfare through the lens of the data welfare state. We, further, suggest that datafied welfare can be fruitfully studied with the capabilities approach to better understand how ideas and values of data welfare intersect with and may allow for the ‘good’ life and human flourishing. The main aim is to highlight the deep-seated changes of the welfare state that emerge with the delegation of care and control tasks to algorithmic systems and the automation based on datafication practices. Welfare provision is undergoing major shifts that imply fundamentally rethinking the role of technology that supports and enhances welfare with the help of data.