Microsoft predicts quantum computing will hit data centres by 2029

Quantum computing is moving out of the lab and into the real world far faster than Wall Street expected. While once considered a distant dream, Microsoft now predicts these machines will be commercially viable in data centres by the end of the decade.

Zulfi Alam, corporate vice president at Microsoft, told CNBC: "I couldn’t say this as certainly last year, but now I am confident that by 2029 there will be machines achieving calculations impossible for classical systems."

Unlike traditional computers that use binary bits, quantum systems utilise qubits. These can exist in dual states simultaneously, allowing for speeds that make today’s supercomputers look sluggish.

Microsoft’s new Majorana 1 chip promises "more computing power than the entire planet in your palm." Beyond raw speed, the technology offers a greener future.

Analyst Madeleine Jenkins noted that quantum would use only a tiny fraction of the power current data centres require, significantly reducing energy needs.

However, the transition won't be seamless. These systems are unlikely to replace traditional hardware entirely; instead, they will function as "accelerators" within specialized "quantum pods."

Challenges remain, including a global shortage of quantum talent and the terrifying prospect of quantum power breaking modern encryption. To prepare, M&A activity is surging as firms scramble to secure supply chains and expertise.

Alam warns that while the destination is clear, reaching it will take "immense effort" and the synchronisation of complex technical breakthroughs. For now, the countdown to 2027—the industry's pivotal year—has well and truly begun.