New York Opens $60 Million Competition for Quantum Technology Hubs
Up to four regions could receive major state investments aimed at turning quantum research into startups, products and high-tech jobs.
New York is opening a $60 million competition for New York quantum technology hubs, offering organizations across the state a chance to build regional centers designed to turn cutting-edge scientific research into companies, commercial products and jobs. Gov. Kathy Hochul announced the program Wednesday, Aug. 12, with proposals due Oct. 14. (Governor Kathy Hochul)
The state plans to select up to four Quantum Technology Commercialization Hubs. Awards are expected to be approximately $15 million per successful applicant, although Empire State Development reserves the right to adjust individual award amounts based on a proposal’s strength and financial need.
For communities outside New York’s largest technology centers, the competition could be significant. The program is statewide, and only one hub may be selected in each of the state’s Regional Economic Development Council regions. That structure gives qualified organizations or partnerships in regions such as the Mohawk Valley an opportunity to compete, although the state has not announced where any of the hubs will be located.
What Are New York’s Quantum Technology Hubs?
A Quantum Technology Commercialization Hub is a regional center intended to help researchers, entrepreneurs and businesses turn quantum science into usable products, services and companies.
The centers will not simply be research laboratories. According to the state’s Request for Proposals, each hub must create or expand a physical facility with access to laboratory space, specialized equipment and areas where researchers and businesses can work together.
Each hub would also be expected to:
- Help researchers develop prototypes and proof-of-concept technologies.
- Support pilot projects and early customer testing.
- Operate an incubation program specifically for quantum startups.
- Connect entrepreneurs with investors, technical advisers and business mentors.
- Build partnerships between universities, researchers and private companies.
- Provide access to advanced research equipment and infrastructure.
- Measure results such as startups supported, jobs created and revenue generated.
A hub must specialize primarily in an area such as quantum computing, quantum sensing or quantum communications while still supporting work across other quantum fields.
Hochul Says New York Wants Research to Become Businesses
The initiative was proposed in Hochul’s 2026 State of the State agenda and received $60 million in New York’s fiscal year 2027 budget. (Governor Kathy Hochul)
“With this $60 million investment, we are creating regional hubs that will turn groundbreaking quantum research into growing companies, good-paying jobs and real-world solutions,” Hochul said. (Governor Kathy Hochul)
The governor said connecting universities and researchers with entrepreneurs and industry partners will be essential if New York wants to compete in an emerging technology sector.
The commercialization focus matters because scientific discoveries do not automatically become successful businesses. Researchers can face substantial barriers between proving that a technology works in a laboratory and producing something that customers can use or companies can manufacture.
The state’s hubs are intended to help close that gap.
Why Quantum Technology Matters
Quantum technology uses principles of quantum physics to perform certain kinds of computing, measurement and communication in ways that differ fundamentally from conventional technology.
Potential applications include computing, extremely sensitive sensors and secure communications. New York officials say future uses could reach sectors including medicine, energy, financial services and data security.
The economic potential remains uncertain because many quantum technologies are still developing. However, the opportunity is attracting substantial investment.
McKinsey & Company estimated that quantum computing, quantum communications and quantum sensing combined could generate up to $97 billion in worldwide revenue by 2035. Its research estimated quantum computing alone could represent between $28 billion and $72 billion of that market. (McKinsey & Company)
Those figures are projections, not guaranteed economic outcomes. Quantum technology continues to face technical, commercial and cost challenges, meaning governments investing public money in the industry are making a long-term bet on technologies that are still evolving.
Who Can Apply?
Not every business or organization is eligible to seek one of the grants.
Applicants must be 501(c)(3) nonprofit organizations, including qualifying academic and research institutions. Two or more eligible organizations may also submit a joint application as a consortium.
A consortium must designate a lead applicant that would:
- Serve as the fiscal agent.
- Assume contractual responsibility with Empire State Development.
- Host the hub’s physical location.
Applicants must also show relevant experience in quantum research and development, technology incubation or operating comparable innovation centers.
That means the competition is not designed as a general economic development grant available to any municipality or company.
What Can the Money Pay For?
State funding is largely aimed at physical infrastructure and equipment.
Eligible expenses include:
- Construction and renovation.
- Leasehold improvements.
- Machinery and equipment.
- Demolition and environmental remediation.
- Furniture and fixtures.
- Certain project-related soft costs.
- Other expenses approved by Empire State Development.
The RFP specifically lists several expenses that are not eligible, including developer fees, salaries and wages, overhead, advertising and costs associated with preparing an application.
This distinction reinforces the state’s goal of using the funding to establish lasting research and commercialization infrastructure rather than primarily paying ongoing operating expenses.
How Applications Will Be Judged
Empire State Development plans to evaluate proposals using a 100-point scoring system.
Among the major categories are:
Hub Establishment and Operations — 20 Points
Applicants must show they can successfully create and manage a regional center, including explaining where it would be located and how researchers, companies and organizations outside the lead institution would gain access.
Expertise and Industry Partnerships — 20 Points
Reviewers will examine existing or proposed business partnerships, access to quantum expertise and experience handling intellectual property and private-sector research relationships.
Startup Incubation — 20 Points
Applicants need plans for recruiting and supporting early-stage quantum companies, attracting mentors and connecting startups with potential customers and corporate partners.
Advanced Tools and Infrastructure — 15 Points
Proposals can include access to high-performance computing, prototyping systems, device fabrication, advanced manufacturing platforms and shared laboratories.
The cost of the proposed services is also worth 15 points.
Could the Mohawk Valley Compete?
The RFP is statewide and allows eligible organizations to form consortia, meaning a qualifying Mohawk Valley nonprofit, university or research partnership could compete if it meets the state’s requirements.
However, no Mohawk Valley applicant or proposed location was identified in Hochul’s Aug. 12 announcement, and it would be premature to suggest that the region will receive one of the hubs.
The larger regional question is whether local colleges, research institutions, manufacturers and economic development organizations have enough quantum expertise, infrastructure and industry partnerships to assemble a competitive proposal.
That will become clearer as applications emerge.
Part of a Larger New York Technology Strategy
The new regional program builds upon New York’s previously announced $300 million Quantum Research and Innovation Hub at Stony Brook University on Long Island. (Governor Kathy Hochul)
The regional hubs are intended to form a network with that research center while emphasizing commercialization — moving technology from research environments toward companies and real-world applications.
The effort also fits within the state’s broader push into semiconductors, advanced manufacturing, biotechnology and other emerging industries. (Governor Kathy Hochul)
The challenge will be demonstrating results.
New York’s RFP requires selected hubs to track measures including the number of startups supported, research successfully commercialized, industry partnerships, jobs created or retained and revenue generated.
Those measurements could eventually help taxpayers judge whether the investment produces the economic benefits promised.
Key Dates for Applicants
Organizations considering an application face several deadlines:
- Aug. 18: Deadline to register for the state’s information session.
- Aug. 21: Information session for prospective applicants.
- Aug. 28: Deadline to submit questions.
- Sept. 14: Target date for ESD responses to applicant questions.
- Oct. 14 at 2 p.m. ET: Proposal deadline.
The state has not yet set a date for announcing winners.
What Happens Next
New York is making a substantial wager that quantum technology can become another pillar of its innovation economy.
The $60 million program will not guarantee that new companies or thousands of jobs follow. Its success will depend on which organizations win, the quality of their partnerships and whether researchers can translate promising science into technology that businesses and consumers actually need.
But the selection process creates a genuine opportunity for regions across New York to make their case.
For the Mohawk Valley, the question now is whether local institutions can assemble the research expertise, industry partnerships and infrastructure needed to compete.
Residents, business leaders and educators should watch closely as proposals develop. A successful regional hub could influence where future research investment, technology companies and specialized jobs take root — and whether Upstate communities participate fully in the next generation of New York’s technology economy.
Sources: Office of Gov. Kathy Hochul; Empire State Development/NYSTAR Quantum Technology Commercialization Hubs Request for Proposals; New York State FY 2027 budget materials; McKinsey & Company Quantum Technology Monitor research. (Governor Kathy Hochul)
Featured Image Alt Text: New York quantum technology hubs supporting research, startups and technology commercialization
