Illinois Pours Billions into the 'Silicon Valley of Quantum Development'

Illinois is making a bold bid to become a global leader in quantum research, aiming to establish itself as the "Silicon Valley of quantum development," as stated by Governor J.B. Pritzker. The state is investing heavily in this emerging field, with significant implications for the future of technology and commercial real estate.

The Quantum Campus Initiative

A key component of Illinois' strategy is the development of the Illinois Quantum and Microelectronics Park, announced in July 2024. Located on the former U.S. Steel South Works site in South Chicago, this massive campus is set to be operational by 2027. The Silicon Valley startup PsiQuantum, aiming to build the first "utility-scale" quantum computer, will be the anchor tenant, occupying 300,000 square feet and creating at least 150 new jobs. The campus, spanning 128 acres with an additional 312 acres available for expansion, is seen as a potential revolution in science and technology.

Economic and Real Estate Impacts

Illinois is investing $200 million in PsiQuantum through grants, workforce development assistance, and a low-interest loan, with the expectation that the company will invest at least $1 billion in return. The state hopes this investment will attract global tech companies and startups, spurring demand for research and development space. Unlike many industries that have embraced remote work, quantum computing requires physical presence, which is expected to stabilize and drive demand for built-out spaces.

The Quantum Computing Challenge

Quantum computing represents the next frontier in technology, capable of solving problems beyond the reach of current supercomputers. However, the field is still in its infancy, and a functional quantum computer has yet to be built. Illinois is focused on scaling up to a "utility-scale" quantum computer, which would not only revolutionize society but also have significant national security implications. The state has allocated $500 million in its budget to support this development, including funding for a crucial cryogenic facility.

Quantum's Broader Impact

The creation of the quantum campus is expected to have wide-ranging effects on the local economy, particularly in commercial real estate and job creation. Quantum facilities, like data centers, require substantial power and infrastructure, but unlike data centers, they are labor-intensive and will generate numerous job opportunities. This, in turn, will drive demand for support infrastructure, housing, and service businesses.

Collaboration and Talent Pool

The quantum campus will benefit from proximity to top talent from leading universities such as The University of Chicago, Northwestern University, and the University of Illinois at Urbana-Champaign. Additionally, the nearby Argonne National Laboratory and Fermilab provide access to world-class research facilities. This concentration of talent is expected to foster collaboration and innovation within the quantum industry.

National and Global Competition

While Illinois is making significant strides, it faces competition from other states and countries in the race to lead the quantum revolution. For instance, Colorado recently secured a $40.5 million federal grant to advance its quantum ambitions. Nonetheless, Illinois' ambitious quantum campus positions it as a frontrunner in the global race to dominate this transformative field.