In a move that could transform Chicago's economy and cement its status as a leader in quantum computing, California-based PsiQuantum is investing billions to build the world's first commercially viable quantum computer at the long-dormant South Works site.

The project promises to revitalize Chicago's Southeast Side, which has struggled since U.S. Steel closed its massive plant over 30 years ago. Mayor Brandon Johnson said it's fitting that a revolutionary new industry will emerge on grounds that once built Chicago's skyline.

The city and state collaborated to attract PsiQuantum as the anchor tenant for a quantum computing park at South Works, which will include a shared cryogenic cooling plant. The park is being developed by Related Midwest.

With a robust academic ecosystem and hundreds of millions in funding, the region aims to become the Silicon Valley of quantum technology. Gov. J.B. Pritzker said the park will drive innovation and provide economic opportunity.

PsiQuantum's mission is to build the world's first useful, large-scale quantum computer. Choosing Chicago could bring $20 billion in impact, thousands of jobs, and elevated tech standing over the next decade, said Mayor Johnson.

The mayor hopes this dispels the notion that his administration is not pro-business. He cited the "Cut the Tape" initiative and a $1.25 billion bond to fund economic development and housing as catalysts for attracting PsiQuantum.

Gov. Pritzker deployed $500 million in the state's 2025 budget for the quantum park, including $200 million for the cooling plant. The state offered PsiQuantum $200 million in incentives for a minimum $1 billion investment and 150 jobs.

Quantum technology operates at the subatomic level, making enormous advances possible. The University of Chicago has been at the forefront, helping the region become a leading global hub. Last year, the university received $150 million from IBM and Google to build the world's most powerful computer.

David Awschalom, director of the Chicago Quantum Exchange, said the announcement will accelerate innovation and further elevate the region into the Silicon Valley of quantum technology. PsiQuantum will be the anchor for the new Illinois Quantum and Microelectronics Park.

In April, PsiQuantum announced it would build its first utility-scale quantum computer in Brisbane, Australia, a project that remains on track. CEO Jeremy O'Brien said Chicago offers everything the company needs to build its first U.S. quantum computer.

Earlier this month, Pritzker announced another tenant for the site, the Quantum Proving Ground, a testing program funded by $140 million in state and federal grants.

Redeveloping the fallow South Works site has been a priority for decades. The closing of the South Works plant was a devastating blow to the area. Since then, the 440-acre site has been vacant, with several major projects falling through.

The city plans to work with the Illinois EPA to address any unforeseen issues during the buildout of the new park. While ground has yet to be broken, Mayor Johnson said breathing new life into the site will show his administration's commitment to economic development.

"There have been starts and stops on the Southeast Side for a very long time, where people made promises and didn't keep them," Johnson said. "My administration is different. I said from the very beginning that we will invest in people, and that's just what this does."