PsiQuantum is planning a multibillion-dollar investment in Chicago to build the nation's first commercially useful quantum computer, according to Mayor Brandon Johnson's office on Thursday.
The Palo Alto, California-based company will be the anchor tenant of the state's future quantum campus at the former U.S. Steel South Works site, breathing new life into the long troubled — and vacant — property.
The campus will create an estimated $20 billion in economic impact over the next decade, according to the city. It would also create more than 175,000 jobs, ranging from maintenance positions to the sciences.
“That's substantial,” Johnson said. “This is gonna be life-changing for not just this region of the city, the city of Chicago as a whole, but the global economy around technology.”
Johnson's administration had crafted an incentive package to lure PsiQuantum to the South Works site, Crain’s Chicago Business first reported last month. At the time, PsiQuantum — which is also building the world’s first utility-scale quantum computer in Brisbane, Australia — was considering the former Texaco refinery in Lockport for its campus.
PsiQuantum did not return requests for comment.
The incentive package pulls from Johnson’s $1.25 billion bond earmarked for economic development and housing projects. The city is also working with Cook County to certify the site for Class 8 property tax incentives, which are designed to encourage industrial and commercial development in areas of the county experiencing severe economic stagnation.
Class 8 incentives would slash the campus's assessment levels from the standard 25% for industrial properties to 10% for ten years, according to the Cook County Assessor’s Office. Assessment levels would rise toward standard levels in years 11 and 12.
The bond, Johnson’s first major development proposal, was approved in April and is a move to wean the city off its reliance on tax increment financing districts to fund development proposals. There will not be a TIF district at the quantum campus, the city said.
PsiQuantum said in a news release that its incentive package from the city is more than $500 million over 30 years. Its Quantum Computer Operations Center will span more than 300,000 square feet with additional space for future expansion.
Quantum computing creates infinite combinations of the “binary bits” used by computers to calculate larger and more complex problems. It could lead to the manufacturing of new medical drugs and make sensitive data almost impermeable to hacking, among other possibilities touted by experts.
Johnson likened the possibilities of quantum computing to that of oil and trains.
“Both industries grew as a result of the other,” he said. “Now, you have another captain … of industry that's going to open up opportunities for other industries to grow.”
Johnson said the campus is expected to draw companies from other sectors like biotechnology and logistics, making it a “catalytic” moment for the surrounding South Side.
It will also build on Chicago’s reputation as a growing technology hub, he said, alongside projects like Google’s redevelopment of the Thompson Center in the Loop.
“We are officially now a global hub for technology,” Johnson said.
Last week, Gov. J.B. Pritzker announced a major partnership with the U.S. Department of Defense’s research and development agency to expand quantum research in the state. The Defense Advanced Research Projects Agency, or DARPA, will join PsiQuantum on the South Works campus, where it will run a program for testing quantum computing prototypes.
“It’s going to ensure our quantum campus and the development of our quantum industry is secured as a global leader,” Pritzker previously told the Sun-Times. “We’re the only state that put forward a quantum campus and quantum plan. And the federal government stepping up and becoming an important partner, particularly DARPA, is a lot of validation.”
The timeline for developing the campus will be “aggressive,” Johnson said. Speed to market is important to PsiQuantum and is one of the reasons it picked the South Works site.
“Chicago is a world-class city with everything PsiQuantum was looking for when identifying a location to build our first utility-scale quantum computer in the United States, from top talent and research institutions to global connectivity and a strong infrastructure, and more,” Jeremy O’Brien, PsiQuantum CEO and co-founder, said in a news release.
The campus will end decades of vacancy at the former steel mill, which shut down 30 years ago. There’s been plans to redevelop the site, which was wrought with environmental concerns, over the years. It now has environmental clearance for development.
Plans, including thousands of homes and a new Solo Cup Co. factory, were all abandoned over time — “but I delivered,” Johnson said.
“At the time, steel was the thing. It built a beautiful skyline and built this country, and in a moment’s notice, it all came tumbling down,” he said. “And now, out of the ashes, here comes quantum computing.”
The city's announcement also comes on the heels of the United Center’s owners announcing plans to build a $7 billion district around the arena. The development is expected to be the largest private investment in the West Side.
Johnson said the two projects will continue to make Chicago a leader for industry and growth.
“It’s a very clear signal that not only are we a global hub for technology [but] for full economic development,” he said.
This is a developing story. Check back for updates.
