Tennessee is investing millions into quantum technology. Here’s why the state cares about it and what it is – WSMV

NASHVILLE, Tenn. (WSMV) – Tennessee is investing $3 million to support the National Science Foundation’s (NSF) X-Labs Quantum Teams.
The idea is to establish world-class research and test infrastructure to “commercialize breakthrough quantum technologies” here in the Volunteer State. The governor announced the investment Monday along with Deputy Gov. and Tennessee Department of Economic Development Commissioner (TNECD) Stuart C. McWhorter.
The funding announced Monday builds on the $43 million investment in the state’s quantum infrastructure that was in Gov. Bill Lee’s 2026 budget, a press release noted.
“Over the past few years, Tennessee has earned the reputation as having one of the strongest quantum ecosystems in the country,” the governor said. “This investment will help ensure that the companies developing tomorrow’s quantum technologies will choose our state to grow, cultivate high-quality jobs and bring new innovations.”
A state press release said the Tennessee Quantum X-Labs Challenge will provide the following resources:
McWhorter said the state is “uniquely positioned” to help quantum companies shift from “breakthrough research to real-world deployment.”
“We’re shifting our economic development strategy from simply recruiting projects to orchestrating ecosystems where companies and innovators can access the partners, infrastructure, and talent they need to succeed, and today’s announcement signals a clear message that we’re ready to do so,” he said.
The state is also rewarding X-Labs teams that move to Tennessee.
“Any X-Lab awardee that relocates to the state, along with companies that emerge from the X-Labs program, will receive priority consideration for LaunchTN’s SBIR/STTR Matching Fund, which augments federal non-dilutive awards with state capital, and for direct investment through InvestTN to companies that meet program eligibility criteria,” the press release said.
“Together, these programs give X-Labs teams a clear path from federal award to sustained growth capital, reducing the runway gap that early ventures face and helping them maximize the impact of their NSF funding in Tennessee.”
NSF says its X-Labs are “guided by the ambition of President Donald Trump’s mandate to revitalize and strengthen America’s science and technology ecosystem by exploring innovative models for funding and sharing high-value scientific research infrastructure and results.”
The goal of these labs is to help the country and NSF support “the next generation of American scientific entrepreneurs.” It provides resources and finances to allow for research that goes beyond “traditional” outputs like datasets and publications.
“The NSF X-Labs initiative will support full-time teams of entrepreneurs, technologists, researchers, scientists and engineers who will enjoy operational autonomy as they pursue technical breakthroughs with the potential to reshape or create entire technology sectors,” the NSF website says.
In 2026, the federal organization plans to award funding for multi-year projects to “selected teams.”
The World Economic Forum (WEF) says quantum technology is not new and continues to evolve. It can be traced back to the work of physicists Niels Bohr, Werner Heisenberg and Erwin Schrödinger in the 1920s.
It’s a lucrative and expansive field based on the principles of quantum mechanics. An important area of the field is quantum computing, which WEF says “enables data to be processed fundamentally differently from conventional computers.”
“While speeding computation is one advantage of quantum technology, it is about more than an upgrade to conventional computing,” WEF says.
Quantum technology provides the encoding building blocks for key technology that you can find everywhere, like in your phone, GPS or in the supercomputers that power AI data centers.
Rebecca Krauthamer, Co-Founder and Chief Product Officer of QuSecure, told WSF that it doesn’t necessarily create a “stronger classical computer,” because “they don’t think in the same way.”
WEF says quantum technology could be worth trillions of dollars in the next decade.
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