Xanadu to get $390 million for data centre as SPAC deal nears
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The facility, which will be the size of three to five tennis courts, should start operating by 2030, and the firm is looking for a location in the Toronto region. Photo by Xanadu Quantum Technologies Inc.Article contentXanadu Quantum Technologies Inc. is set to receive as much as $390 million in government financial aid to build the engineering and domestic manufacturing capabilities for its first quantum-powered data centre in Ontario, a deal that’s being negotiated just as the company is about to go public.Sign In or Create an AccountEmail AddressContinueor View more offersArticle content“It’s a huge validator of our approach to build large-scale quantum computers using photonics,” chief executive Christian Weedbrook said.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.We apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Play VideoArticle contentArticle contentDetails about the money from the Canadian and Ontario governments are still being finalized, he said.Article contentPosthasteBreaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentXanadu anticipates the data centre will cost around US$1 billion. The facility, which will be the size of three to five tennis courts, should start operating by 2030, and the firm is looking for a location in the Toronto region.Article contentXanadu is about to go public through a deal with a blank-cheque company that could value the business at about US$3.6 billion. The merger with Crane Harbor Acquisition Corp. is set to happen in late March, capitalizing Xanadu with about US$500 million in gross proceeds, assuming no redemptions from Crane’s shareholders.Article contentOnce running, the quantum-powered data center would host hundreds of server racks, helping to solve complex problems for sectors such as pharmaceuticals, materials design, chemistry, defense and finance. Thousands of data centers would be needed to achieve the same computing power Xanadu’s is expected to have, Weedbrook explained.Article content“Once that $1 billion data center has been built, the next one after we estimate the cost around $200 to $300 million because all the R&D is essentially being done,” he said.Article contentArticle contentFounded in 2016, Toronto-based Xanadu develops quantum computers powered by photons, or light particles, with scalable capabilities and that can be commercialized. Its systems run at room temperature, removing the need for the expensive cryogenic cooling required by many other quantum platforms.Article contentRead More Can Canada remain a hotbed for futuristic technology? Ottawa promises up to $92 million for four Canadian quantum companies Article contentThe company will be listed on Nasdaq and the Toronto Stock Exchange. Existing investors include Bessemer Venture Partners, Georgian Partners and Omers Ventures, which was the first to provide a $2.5 million check a decade ago.Article contentBloomberg.comArticle contentTrending 'The bids just dried right up': Iran-driven oil shock ripples through Canadian economy News 82 Canadians crack Forbes’ 2026 list of the world’s billionaires. Here's the top 10 High Net Worth What's next for Roots, the iconic Canadian brand that said it might put itself up for sale? 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Here's the top 10 High Net Worth What's next for Roots, the iconic Canadian brand that said it might put itself up for sale? Retail & Marketing Canada once considered building an emergency oil reserve with the U.S., but the Americans backed out Oil & Gas Honda warns of $15.7 billion charge on global EV downturn in shock announcement Electric Vehicles