Quantum computing advances put data centers in the spotlight

Microsoft and other hyperscalers are stepping up investment in quantum computing, and Microsoft says machines with commercial value could be operating in data centers by 2029.

Quantum computing is moving from lab research toward possible commercial deployment as industry and government investment increases. Cloud providers and hyperscalers are expanding development, and companies are discussing how quantum machines might integrate with existing data center infrastructure. Microsoft said this year that by 2029 it expects machines that deliver computations beyond classical computers to have commercial value in data centers. Interest has grown because of new technical work and rising public and private funding. Key points: - Zulfi Alam, Microsoft’s corporate vice president of Quantum, said machines that perform calculations classical computers cannot do could have commercial value in data centers by 2029. - Microsoft unveiled a new quantum computing chip called Majorana last year. - Hyperscalers such as Google and Amazon, alongside Microsoft, are investing heavily in quantum technology. - Analyst Patrick Moorhead said hyperscalers and platform vendors are increasing investment through cloud access, pricing controls, and developer platforms, and that the defense sector is investing early in quantum computing and networking. - Governments are raising public investment in quantum technology; the European Centre for International Political Economy reported China leading at just under $18 billion, with the EU close behind. - Quantum computers use qubits that can exist in multiple states simultaneously, enabling different computational approaches than classical bits. Summary: Industry and government funding is accelerating development and planning for quantum systems that could join commercial computing environments within the decade. Microsoft’s timeline identifies 2029 as a year when some machines may have commercial value in data centers. How data centers will be adapted and when broader operational deployment will occur remains undetermined at this time.