Electric utilities are racing to understand quantum computing's impact on power demand and grid operations before they're caught off guard the way they were with artificial intelligence, according to industry experts and early adopters. The technology, which harnesses quantum mechanics to solve problems classical computers can't handle, is reaching what McKinsey calls a "commercial tipping point" — with over 300 companies worldwide now testing it and startup investment hitting $12.6 billion in 2025, six times the previous year's total. Utilities from Chattanooga to Chicago are launching pilot projects to explore how quantum computing might optimize battery dispatch, improve cybersecurity, and solve large-scale planning challenges while also preparing infrastructure for its unusual electricity needs.
The demand profile for quantum computing looks nothing like what grid planners have seen before. The technology requires round-the-clock cryogenic cooling to near absolute zero, plus additional layers of computing workflow loads, according to Aparna Prabhakar, chief strategy and sustainability officer for energy management at Schneider Electric. She argues planners must "build smarter infrastructure" because simply adding more substations won't address this new pattern. But Jeremy Renshaw, director of open power AI and quantum at the Electric Power Research Institute, sees it differently — he says quantum computing's processor power use is "comparatively small" even though cooling systems need roughly 15 kilowatts per hour, noting that "the energy to cool even millions of ions or atoms is extremely small compared to the energy used for AI training in GW-scale datacenters." McKinsey projects quantum computing companies generated more than $1 billion in revenue globally in 2025, a figure that could climb to $4.4 billion by 2028, with the technology potentially creating up to $2.7 trillion in economic value during the 2030s.
Several utilities have already moved beyond planning. EPB, Chattanooga's municipal utility, has operated a quantum communications network since 2023 and will install a quantum computer with 36 logical qubits later this year to optimize locations and dispatch for 150 batteries across its 200,000 meters and 112 substations. Middle Tennessee Electric is exploring similar battery optimization applications across its 365,000 meters and 2,200 square mile territory, with COO Brad Gibson calling it "a toe-in-the-water moment that can show the opportunities and risks of quantum." Commonwealth Edison announced in 2025 it's powering the Illinois Quantum and Microelectronics Park, a 128-acre campus that will house what PsiQuantum plans as the first utility-scale, error-corrected quantum computer. Duke Energy is working with IBM Quantum to build "foundational quantum literacy," with lead enterprise architect Isuru Wijesundara calling it "one of the lowest-risk and highest-value investments we can make" in something potentially transformative.
The technology's promise comes with significant uncertainties. Quantum computing will make current encryption methods "obsolete," with some experts warning that by 2030 a sufficiently powerful quantum computer could crack today's protections in minutes — which is why NIST finalized post-quantum cryptographic standards in 2024. Renshaw expects the market tipping point around 2028 to 2030, when quantum processing units can handle 100 logical qubits — enough to optimize a microgrid or small service territory. But Prabhakar warns utilities face three key challenges: avoiding over-commitment while not repeating AI's mistake of ignoring new technology too long, preparing for whichever hardware approach wins out among competing modalities like superconducting and ion trap systems, and planning infrastructure when electricity demand remains unclear. The lesson utilities are taking from AI's rapid growth is simple: quantum computing is coming fast, and waiting to plan for it isn't an option.