Just as artificial intelligence has transformed the data center Industry into a vast repository of wealth, $Quantum Computing (IP000011.IP)$it is also accelerating its own ‘infrastructure revolution.’

Quantum computing leverages the principles of quantum mechanics to solve complex problems that traditional computers cannot handle. To date, these supercomputers have mostly been found in academic institutions or government departments, due to their limited practical applications. This is why investment in the quantum field lags behind that in artificial intelligence by about a decade.

However, quantum computing is now rapidly advancing and has reached a stage where it is ready for commercial applications. As a result, it now requires its own dedicated ‘territory’. A new report from JLL states that significant real estate impacts are ‘on the horizon’.

Andrew Batson, JLL’s Head of Data Center Research, said: ‘There will be a clear tipping point when this technology becomes commercially viable and has commercial application value. At that time, we will see a significant increase in scale, much like what we have seen in the AI sector. We are seeing the private sector’s operations closely tied to the commercialization process of products.’

Analysts predict that this period could be just five years away.

Huge potential

According to a report by JLL (which cites research from McKinsey and Pitchbook), the total revenue of quantum-related companies last year was less than $750 million, while startups focused on quantum technology received approximately $2 billion in funding. The report notes that quantum computing technology has made rapid progress in just the past year, with an expected investment of $20 billion by 2030 and projected revenues of $100 billion by 2035.

The JLL report states: ‘A potential ‘quantum advantage breakthrough’ around 2030 could trigger $50 billion in investments, similar to the impact ChatGPT has had on AI investment.’

Shopify$Microsoft (MSFT.US)$、 $IBM Corp (IBM.US)$ 、$Alphabet-A (GOOGL.US)$and$Amazon (AMZN.US)$These companies are all investing in and making breakthroughs in the field of quantum computing.

Microsoft’s CEO stated during the company’s earnings reports call last month: ‘The next major breakthrough in the cloud will be quantum technology, and I am very excited about the progress we have made.’

The practical applications of these principles are only just beginning to be understood. Batson said: ‘The first areas that come to mind are the pharmaceutical industry, agriculture, and then materials science, which actually covers all types of manufacturing. There is also the financial services sector. If we consider cryptography, quantum technology brings both significant opportunities and substantial threats.’

So, where does quantum computing stand?

Since most quantum computing technology currently exists within academic institutions or government departments, the development and promotion of commercial applications naturally concentrate in these areas.

According to JLL experts, this emerging industry requires access to academic resources, infrastructure, a well-educated workforce, government support, private investment, and advocacy for public-private partnerships.

Currently, the top 20 global quantum technology markets are mostly located near national research centers and universities. In the United States, these markets include Chicago, Boston, New Haven in Connecticut, parts of Colorado and Maryland, and Southern California.

Paisley Quantum, a company based in Silicon Valley, has chosen to open a facility, primarily funded by the state of Illinois, at an old steel mill site in Chicago. The ‘Illinois Quantum and Microelectronics Park,’ developed by related Midwest companies, spans 128 acres, or approximately 5.6 million square feet.

Batson calls Chicago a model for private Real Estate development centered around quantum computing, but he also notes that, overall in the United States, private development still accounts for less than 20% of the market share.

What about data centers?

At present, quantum computing cannot run on traditional data centers used for storing artificial intelligence and cloud services. This is because the rack structure and physical form of quantum computers differ from those of traditional computers. Additionally, quantum computers require electromagnetic shielding to prevent so-called ‘noise’—any external interference, including electrical, magnetic, vibrational, or acoustic disturbances.

Batson said, ‘The number one question I get from clients is whether quantum computing will make existing data centers obsolete. The answer is no. Quantum computing will have a positive impact on existing data center infrastructure. It includes both the retrofitting of existing facilities and the construction of new ones. In short, all of the above.’

According to a JLL report, there are two possible development paths for the application of quantum technology in Real Estate. One is that quantum technology may continue to concentrate in existing major areas; the other is that it will integrate with data centers. The argument for the first path is that, due to the highly specialized nature of this technology, very few places can truly support it on a large scale.

On the other hand, data centers can provide the necessary cloud infrastructure for future quantum computing. Combining quantum technology with artificial intelligence can make both more efficient.

Batson said, ‘This is a stage for educating and monitoring technological development. We are simply waiting to observe its progress, its nature, and the specific development process.’