Real Estate

IBM’s Bold Expansion at U.S. Steel South Works: The Quantum Future In Illinois

Illinois is rapidly emerging as a premier destination for data centers and quantum computing enterprises, driven by strategic investments, a robust technological ecosystem, and significant corporate commitments. A pivotal development in this trajectory IBM’s decision to establish a quantum computing facility at Chicago’s historic U.S. Steel South Works site, underscored the state’s ascendancy in the tech sector.

IBM’s Strategic Expansion in Chicago

IBM plans to anchor a new research center in Chicago, reinforcing Illinois’ position as a burgeoning hub for quantum computing. The company will join the National Quantum Algorithm Center, collaborating with entities like the Defense Advanced Research Projects Agency (DARPA) and PsiQuantum at the Illinois Quantum and Microelectronics Park (IQMP) on the former U.S. Steel South Works site. This initiative includes constructing a quantum computer in Chicago, initially at Hyde Park Labs near the University of Chicago, with plans for a permanent location within the quantum park. IBM is set to receive a state grant of $25 million to support this endeavor.

Credit Intersect Illinois

Illinois’ Commitment to Quantum Computing

Governor J.B. Pritzker has been instrumental in positioning Illinois as a leader in quantum technology. The state has allocated $500 million in funding to attract companies specializing in quantum computing, microelectronics, and artificial intelligence. This investment aims to foster innovation, create high-paying jobs, and establish Illinois as a global tech leader.

The Illinois Quantum and Microelectronics Park (IQMP)

The Illinois Quantum and Microelectronics Park is a planned 128-acre quantum computing technology campus located at the southern end of the former U.S. Steel South Works site in Chicago. It aims to be a global center for quantum-enabled research and technology development, connecting government, universities, national labs, and industry to facilitate the advancement of quantum technologies. The first phase includes facilities for PsiQuantum, a shared cryogenic cooling facility, and a Quantum Research Center, with construction expected to start in 2025.

Why Illinois Attracts Data Centers and Quantum Computing Firms

Several factors contribute to Illinois’ appeal for data centers and quantum computing companies:

  1. Strategic Location: Situated in the heart of the U.S., Illinois offers easy access to global supply chains and consumer markets, which is invaluable for fast-moving tech companies.
  2. Skilled Workforce: The state’s focus on education and workforce development has cultivated a pool of exceptional talent. Illinois is home to several top-tier universities, such as the University of Illinois Urbana-Champaign and University of Chicago, that work closely with the tech industry.
  3. Collaborative Ecosystem: Illinois hosts world-class research institutions and federal labs, such as Argonne National Laboratory and Fermi National Accelerator Laboratory, creating a unique synergy that perpetuates technological breakthroughs.
  4. Infrastructure Readiness: The state is committed to continually improving its infrastructure to support advanced tech industries, ensuring companies have access to top-tier telecommunications, power, and logistics services.
  5. Substantial Support: Illinois offers new tax incentives specifically designed to reduce operational costs for tech companies. Customized support packages include assistance with site selection, workforce training, and regulatory processes.

Economic and Community Impact

The development of the IQMP and the influx of companies like IBM and PsiQuantum are expected to have a substantial economic impact. Estimates suggest the quantum campus could generate a $20 billion economic impact over the next decade, creating thousands of jobs in computing and related fields. Moreover, these projects aim to revitalize areas like Chicago’s South Side, transforming long-abandoned industrial sites into hubs of innovation and economic activity.

Conclusion

Illinois’ strategic investments, robust infrastructure, and collaborative ecosystem have positioned it as a leading destination for data centers and quantum computing enterprises. IBM’s expansion at the U.S. Steel South Works site exemplifies the state’s commitment to technological advancement and economic growth. As Illinois continues to attract and nurture tech giants and startups, it cements its reputation as a global powerhouse in quantum computing and data innovation.

Gordon Lamphere J.D.

Gordon is a licensed Illinois & Wisconsin Real Estate Broker, who manages the commercial sales and leasing team. Gordon also leads Van Vlissingen and Co’s media marketing team. He is an honors graduate of St. Mary’s College of Maryland and holds a Juris Doctorate from Tulane University Law School.

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