As AI grows, so does the need for Quantum Computing. Here's what investors need to know.
Quantum computing is a new technology that promises to solve problems that classical computers cannot, quickly moving from research labs to real-world use.
Google introduced its new quantum computing chip, Willow late last year. Willow has exceptional computing power. It can solve problems that would take regular computers 10^25 years in less than five minutes. This breakthrough highlights the potential for solving previously intractable problems in fields like cryptography, materials science, and AI.
As both tech giants and startups work to create scalable quantum systems, one issue is clear: high performance computing requires a lot of energy. The rise in energy demand will require improvements in renewable energy, portable energy systems, and battery technology. This will impact many industries and open up chances for new technology to lead.
Quantum computers operate in highly controlled environments, often requiring cryogenic temperatures to maintain quantum coherence. This involves energy-intensive cooling systems and specialized hardware, making quantum computing operations substantially more power-hungry than traditional data centers. As these systems scale, the energy demands will increase substantially, emphasizing the need for sustainable energy solutions.
Renewable Energy Becomes A Critical Player
To support the energy-intensive requirements of quantum computing without exacerbating carbon emissions will require renewable energy sources such as solar, wind, and hydropower. Companies that invest in large-scale renewable energy projects will be well-positioned to benefit from this trend.
The Need for Portable Energy Systems and Battery Packs
Quantum computing’s rise will also drive demand for portable energy systems and advanced battery packs. Quantum computers are becoming smaller and can be used in remote or mobile locations. Because of this, having reliable portable power will be important. New energy storage technologies can provide effective and high-capacity options. Examples include solid-state and lithium-sulfur batteries.
Interested in browsing the private company investment opportunities available on EquityZen's marketplace?
The Rise of Energy-as-a-Service (EaaS)
EaaS providers may also gain prominence, offering tailored energy solutions to quantum computing facilities. Companies that offer these integrated energy solutions, including renewable energy sourcing, storage systems, and energy efficiency management are well-situated for growth.
Broader Industry Impacts
The ripple effects of quantum computing’s energy demands will extend to:
- Data Centers: Quantum computing will redefine data center infrastructure, requiring energy-efficient designs and renewable energy integration.
- Electronics Manufacturing: The production of quantum computing hardware will drive demand for materials like superconductors, impacting companies in the semiconductor and advanced materials sectors.
- Telecommunications: Quantum networks, vital for quantum computing’s practical deployment, will require energy-efficient, high-performance infrastructure.
- Energy Storage Technologies: Enhanced battery technologies will find applications beyond quantum computing, benefiting industries like electric vehicles, aerospace, and grid storage.
The rise of quantum computing is not just a technological revolution but also an energy revolution. Supercomputers will require new energy solutions to solve complex problems at scale. Massive energy demands will accelerate innovation and investment in renewable energy, portable energy systems, and advanced batteries.
This trend will reshape the strategies of both public and private energy companies. It will also create wider ripple effects across a wide range of industries. As quantum computing becomes mainstream, the companies that serve with its energy needs—sustainably and efficiently—will be poised for success in the long term.
Learn more about the companies working to shape the future of quantum computing by joining EquityZen’s marketplace.
Investments in private companies are illiquid, may be speculative, and have substantial risks, including the risk of loss. See our Risk Factors for a more detailed explanation of the risks involved by investing through EquityZen’s platform.
