Key Takeaways:
- Quantum computing is advancing rapidly and nearing commercial viability, creating new demand for specialized real estate.
- Tech giants like Microsoft, IBM, Google, and Amazon are investing heavily in quantum breakthroughs.
- The industry requires proximity to research institutions, infrastructure, skilled talent, government support, and private investment.
- Experts believe quantum computing could transform commercial property markets much like AI revolutionized the data center sector.
A New Frontier in Computing and Real Estate
Quantum computing harnesses the principles of quantum mechanics to solve problems far beyond the reach of today’s most powerful traditional computers. Historically, these machines have been limited to academic or government facilities due to their specialized nature and limited commercial applications.
However, the sector is now evolving quickly. According to a JLL report, recent breakthroughs mean quantum computing is edging closer to widespread commercial adoption — and with it, a growing need for purpose-built real estate.
Growth Potential
In 2023, quantum computing companies generated less than $750 million in revenue, while startups in the field attracted about $2 billion in funding, based on McKinsey and Pitchbook data cited by JLL.
Forecasts project:
- $20 billion in investments by 2030
- $100 billion in revenue by 2035
- A potential “quantum advantage breakthrough” around 2030 could ignite $50 billion in new investments, similar to ChatGPT’s impact on AI funding.
Five Years to Commercial Scale?
Andrew Batson, JLL’s head of data center research, predicts that full commercialization could be just five years away. When that tipping point arrives, he expects a surge in private-sector investment and large-scale facility development, mirroring the AI data center boom.
Microsoft CEO Satya Nadella has called quantum computing “the next big accelerator in the cloud,” with potential applications spanning pharma, agriculture, manufacturing, material science, and financial services — especially in encryption and cybersecurity.
Where Quantum Computing Will Take Root
Because quantum systems demand unique conditions, new commercial facilities will likely cluster around major academic hubs and research centers.
Top U.S. markets include:
- Chicago
- Boston
- New Haven, Connecticut
- Parts of Colorado and Maryland
- Southern California
One standout project is PsiQuantum’s new facility at a repurposed Chicago steel mill, part of the Illinois Quantum and Microelectronics Park — a 128-acre, 5.6 million sq. ft. development largely funded by the state of Illinois.
Why Quantum Doesn’t Fit in Traditional Data Centers
Quantum computers require specialized racks, electromagnetic shielding, and protection from external disturbances such as electrical interference, magnetic fields, vibrations, and noise.
While quantum technology won’t make traditional data centers obsolete, JLL notes it could complement existing cloud infrastructure. Some experts see two possible real estate paths:
- Concentration in current research hubs
- Integration with existing or redeveloped data centers
Integrating quantum with AI could enhance efficiency for both technologies.
Looking Ahead
The quantum computing real estate market is still in its early stages, with private developments accounting for less than 20% of the domestic landscape. For now, industry leaders are focused on monitoring technology advancements, educating stakeholders, and identifying the best locations for future facilities.
As commercialization approaches, the sector may witness a property boom reminiscent of AI’s impact on data centers — but on a scale uniquely suited to the demands of quantum technology.