Quantum computing is expected to also usher in "infrastructure investment boom"! JLL report: by 2030, it may attract $50 billion in investment.

Just as artificial intelligence has turned the data center industry into a massive treasure trove, quantum computing is also accelerating its own "infrastructure revolution." Quantum computing uses quantum mechanics to solve complex problems that traditional computers cannot handle. So far, these supercomputers mostly exist in academic institutions or government departments, as their practical applications are limited. This is why funding in the quantum field lags behind about ten years compared to the artificial intelligence field. However, quantum computing is now rapidly developing and has the potential for commercial applications. Therefore, it now also needs its own exclusive "territory." A new report from JLL states that significant impacts in real estate are "emerging." Andrew Batson, Director of Data Center Research at JLL, said, "There will be a clear point in time when this technology is commercialized and has commercial value. At that point, we will see significant growth in scale, much like what we have seen in the field of artificial intelligence. We see that the operations of the private sector are closely linked to the commercialization of products." Analysts predict that this time may be just five years away. Enormous potential According to JLL's report (which cites research from McKinsey and Pitchbook), revenue from quantum-related companies last year was less than $7.5 billion, and startups focused on quantum technology received about $20 billion in funding. The report notes that in just the past year, quantum computing technology has seen rapid development, with an expected $200 billion investment by 2030 and the creation of $1 trillion in revenue by 2035. According to the JLL report, a "quantum advantage breakthrough" expected around 2030 could trigger a $50 billion investment, similar to the impact ChatGPT has had on the field of artificial intelligence. Companies like Microsoft Corporation, IBM, Alphabet Inc. Class C, and Amazon.com, Inc. are investing in quantum computing and making breakthroughs. The CEO of Microsoft Corporation stated in last month's earnings call, "The next major breakthrough in the cloud space will be quantum computing, and I am very excited about the progress we are making." The actual principles of its application are just beginning to be understood. Batson said, "Pharmaceuticals, agriculture, and then materials science are the first things that come to mind, covering all types of manufacturing. In addition, there is the financial services industry. When we consider encryption technology, quantum technology brings not only huge opportunities but also huge threats." So where does quantum computing stand? Since most quantum computing technologies currently exist in academic institutions or government departments, centralized promotion of the commercial development of quantum computing applications is naturally concentrated in these areas. According to JLL experts, this emerging industry needs academic resources, infrastructure, skilled labor, government support, private investment, and advocacy for public-private cooperation. Many of the top 20 quantum technology markets globally are located near national research centers and universities. In the United States, these markets include Chicago, Boston, New Haven, Connecticut, parts of Colorado, Maryland, and Southern California. Plexus Quantum, a company from Silicon Valley, chose to set up a factory on a former steel mill site in Chicago, funded mainly by the state of Illinois. The "Illinois Quantum and Microelectronics Park," developed by companies in the central and midwestern regions, covers 128 acres and about 5.6 million square feet. Batson called Chicago a model for private real estate development around quantum computing, but he also pointed out that overall, private development holds less than 20% of the market share in the United States. So, how does this relate to data centers? Currently, quantum computing cannot run in traditional data centers used for storing artificial intelligence and cloud services. This is because the rack structure and physical form of quantum computers are different from traditional computers. In addition, quantum computers require electromagnetic shielding devices to prevent so-called "noise," which refers to any external interference including electrical, magnetic, vibrations, or sound. Batson said, "The primary question I receive from clients is whether quantum computing will render existing data centers obsolete? The answer is no. Quantum computing will have a positive impact on the infrastructure of existing data centers. This includes both retrofitting existing facilities and new construction. In short, all of the above." According to the JLL report, there are two possible paths for the application of quantum technology in the real estate sector. Firstly, quantum technology may continue to concentrate in existing major areas; secondly, it may be combined with data centers. The argument in favor of the first path is that this is a highly specialized technology, so there are actually very few places that can truly support this technology 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 of educating and monitoring technological development. We are just waiting to observe its conditions, its essence, and its specific development process."