What is Quantum Computing, and What Are the Sustainable IT, Data Center and Energy Implications for Channel Partners?

Quantum computing chips and associated services are under development from Amazon Web Services (AWS), Google, Microsoft, Nvidia, IBM and many other companies. But when will quantum chips, hardware and associated applications arrive, and what are the potential implications for sustainability, climate tech and science research?

With those questions and others in mind, this regularly updated blog tracks statements and milestones from:

• Hyperscale cloud providers such as AWS, Google, and Microsoft;
• enterprise IT giants such as IBM;
• GPU and chip companies such as Nvidia; and
• pure-play upstarts D-Wave Quantum, IonQ and Rigetti Computing.

What is Quantum Computing and Why Does It Matter?

Generally speaking, quantum computing uses specialized technology—including computer hardware, software and algorithms that take advantage of quantum mechanics—to solve complex problems, IBM asserts. By contrast, classic computers and existing supercomputers can’t solve, or can’t solve such problems quickly enough, IBM says.

The current quantum computing market is relatively small since these applications require new types of hardware and software -- much of which is remains under development. Still, analysts are bullish about the market potential since the new systems may help scientists to tackle climate tech, healthcare, sustainability and medical challenges.

With those and other opportunities in mind, annual quantum computing revenue will reach $12.6 billion by 2032, up from $1.2 billion in 2024, Fortune Business Insights predicts. That's a 34.8% compound annual growth rate (CAGR), the researcher notes.

Quantum Computing Developments, Milestones, Partnerships and Product Launches

Here's a timeline tracking quantum computing chips, hardware, software and cloud services developments -- and the potential implications for sustainable IT partners.

November 20 - IBM and Cisco Partnership: IBM and Cisco Systems are partnering to explore networked distributed quantum computing. The companies are targeting an initial proof-of-concept demonstration by the end of 2030. The work could set the stage for a quantum computing Internet by the late 2030s, the duo said. Related: Cisco sustainability and IBM sustainability strategies.

November 18 - Quantum Computing Partnership: NTT and OptQC are partnering to accelerate the market for optical quantum computing solutions, the two companies said. Among the potential benefits: Improved scalability, faster processing and enhanced energy efficiency, the companies said. Related: NTT sustainability strategy

November 12 - IBM Milestone: IBM is "rapidly delivering milestones towards building the world's first large-scale, fault-tolerant quantum computer by 2029," the technology company said.

November 10 - New Alliance: HPE has formed the Quantum Scaling Alliance, a "global initiative dedicated to making quantum computing scalable, practical, and transformative across industries." Co-leaders include Masoud Mohseni from HPE Labs and Qolab CTO John Martinis. Founding members include: 1QBit, Applied Materials, Inc., HPE, Qolab, Quantum Machines, Riverlane, Synopsys and University of Wisconsin.

November 7 - Quantum Computing Data Center: Qilimanjaro Quantum Tech has launched a Quantum Data Center in Barcelona, Spain. The center can host up to 10 quantum computers, while also offering Qilimanjaro’s Quantum-as-a-Service (QaaS) platform, SpeQtrum.

November 5 - Board Room Update: Aparna Prabhakar, chief strategy & sustainability officer of Schneider Electric’s $32 billion Energy Management business, has joined QuantWare's board as a non-executive member. The move signals QuantWare's combined focus on quantum computing and sustainability. Prabhakar previously was VP of quantum ecosystem at IBM.

October 23 - Potential US Government Investments: Several quantum-computing companies are in talks to give the Commerce Department equity stakes in exchange for federal funding, a signal that the Trump administration is expanding its interventions in what it sees as critical segments of the economy, The Wall Street Journal reported. The discussions involve IonQ, Rigetti Computing and D-Wave Quantum, the report said.

October 22 - Milestone: Alphabet CEO Sundar Pichai said the tech giant's quantum computing chip, known as Willow, has achieved the “first-ever verifiable quantum advantage," SeekingAlpha reported.

Quantum Computing and Sustainable Technology: May 2025 Updates

May 6 - University Research: Researchers at Rochester Institute of Technology and University of Rochester recently connected their campuses with an experimental quantum communications network using two optical fibers, the two organizations said.

May 6 - Cisco Quantum Networks: Cisco Systems has launched a Quantum Networking Lab in Santa Monica, California. Cisco also unveiled a prototype quantum entanglement chip developed with UC Santa Barbara. Cisco’s quantum networking roadmap seeks to "accelerate the timeline for practical quantum computing from decades to a few years," the company said.

May 5 - IBM Quantum Subscription Services: IBM has unveiled Quantum Flex Plan, a" new access model designed to offer flexibility and simplicity in running experiments on IBM Quantum hardware." The subscription starts at $30,000.

May 2 - Quantum Computing and IT Services: IBM and Tata Consultancy Services are partnering to further develop India’s quantum computing industry. The effort will likely involve an IBM quantum computer deployment at a major technology park in India.

Quantum Computing and Sustainable Technology: March 2025 Updates

March 2025 - Research Center Nvidia plans to build a quantum computing research center in Boston.

March 2025 - Partnership: Pasqal and Nvidia are partnering to expand customer access to quantum computing tools.

March 2025 - Nvidia Conference: Nvidia's annual GTC event will include Quantum Day -- a first-ever for the conference. The conference runs March 17-21 in San Jose, California.

Quantum Computing and Sustainable Technology: February 2025 Updates

February 2025 - Amazon Ocelot Chip: Amazon become the third tech giant in as many months to announce a breakthrough in quantum computing, BBC reported. The cloud and e-commerce giant unveiled Ocelot a prototype chip built on "cat qubit" technology - an approach that derives its name from the famous "Schrödinger's cat" thought experiment, BBC said.

February 2025 - Google Strategy: Google is striving to release commercial quantum computing applications within five years, Reuters reported. "We’re optimistic that within five years we’ll see real-world applications that are possible only on quantum computers," Google VP of Engineering Hartmut Neven said, the report added.

February 2025 - Funding: Quantum Machines, an Israeli startup, raised $170 million in a Series C round, bringing total funding to date to $280 million, The Wall Street Journal reported. The funding surfaced one week after Microsoft announced its Majorana 1 chip; and roughly two months after Google unveiled the Willow chip development.

February 2025 - Venture Capital: Hitachi has launched a $400 million fund. Target investments include disruptive startups that focus on data centers, distributed energy systems, future of work and industrial AI, as well as startups in new frontiers including bio, quantum, nuclear fusion, life science, space and adjacent technologies, the company said.

2024 Developments and Updates

December 2024 - IBM and Illinois Partnership: IBM and the state of Illinois are collaborating to establish the new National Quantum Algorithm Center in the Illinois Quantum and Microelectronics Park (IQMP) in Chicago. Key participants include the University of Chicago and the University of Illinois Urbana-Champaign. The IBM Quantum System Two will deploy in Chicago in 2025.

November 19 - AI and Processors: Nvidia and Google are partnering to design quantum artificial intelligence processors. 

November 2024 - IBM Advancements: IBM announced hardware and software advancements to "execute complex algorithms on IBM quantum computers with record levels of scale, speed, and accuracy," the company said. IBM says the computers can help customers "tackle scientific problems across materials, chemistry, life sciences, high-energy physics, and more," the firm added.

October 2024 - IBM in Germany: IBM has unveiled the first IBM Quantum Data Center located outside of the United States. The new center is located in Ehningen, Germany.

September 2024 - IBM in New York: IBM has expanded a Quantum Data Center in Poughkeepsie, New York. The data center has the "highest number of available utility-scale quantum computers at a single location in the world," IBM asserts. A second IBM Quantum Data Center which will soon open in Ehningen, Germany, the company said. IBM Cloud allows customers to access the quantum computing capabilities.

May 2024 - IBM Partnerships: IBM and multiple partners launched a quantum computing working group focused on sustainability and energy transition research. The effort involves such collaborators as PINQ², Université de Sherbrooke, Hydro-Québec, University of Luxembourg, and E.ON.

April 2023 - Microsoft Partnership: Johnson Matthey is leveraging Microsoft Azure Quantum to drive new discoveries in sustainable energy, the two companies said.

What did we miss? Email me your market updates (Joe@MentoreVentures.com).