Australian Startup Tests Quantum Computer in Data Center to Cut AI Energy Use
At a Glance
Australian startup Diraq is running the world's first field test of a silicon-chip quantum computer in a commercial data center.
Its founder says quantum computing could ease AI's huge energy demands within five years.
The company is one of six in a US military quantum benchmarking program.
Australian startup Diraq has installed a small quantum computer in a commercial data center in Sydney, a first worldwide, as the industry looks for ways to curb the power demands of artificial intelligence.
Key Statements and Focus Area
Dzurak on AI's Energy Appetite: "One of the reasons the next generations of AI are looking to consume so much power is that a whole class of the problems they are solving are problems that really are much better suited to quantum calculations." — Andrew Dzurak, Founder, Diraq.
Foley on Commercialization: "Australia is very good at making discoveries, but turning them into successful businesses requires much more than great science." — Cathy Foley, President, Australian Academy of Technological Sciences and Engineering.
Focus Area: The first data center field test of a silicon-based quantum computer and its potential to reduce AI energy use.
Unlike most quantum machines, which need extremely cold cryogenic temperatures, Diraq's self-contained system draws under 20 kilowatts and runs alongside a room-temperature computer in Equinix's Sydney facility.
It has eight qubits on a silicon chip, to be upgraded gradually to 150,000 by 2029. Diraq plans a two-million-qubit system using a couple of hundred kilowatts by 2031, two years ahead of DARPA's 2033 deadline.
Beyond AI, Dzurak says quantum computing could speed energy-efficient modeling of molecules for pharmaceuticals, lighter batteries, and chemicals.
The company estimates it could raise drug trial success by 10 percent and cut the cost of bringing a medicine to market by a third, provided it runs for under $100 million a year.
Diraq is among six global companies at the third stage of DARPA's quantum benchmarking initiative, which tests whether any quantum computer can solve real problems cost-effectively.
Another Australian startup, PsiQuantum, is also on the list and is backed by an Au$1 billion government investment, with construction in Queensland starting in June.
Foley says Australia has more than 50 quantum-related businesses, and Dzurak credits the AUKUS partnership with easing security barriers to sharing quantum technology.
FYI
Gigawatt-scale data centers require new power plants or put pressure on electrical grids, sparking community backlash in several countries.
Silicon Quantum Computing, founded by Australian physicist Michelle Simmons, was named by Time magazine as having one of the best inventions of 2026 for a quantum-enhanced AI chip.
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