EPB Quantum expands platform with hybrid computing to drive real-world energy innovations

EPB Quantum, part of EPB, has taken a major leap toward making quantum computing commercially practical by adding hybrid computing capabilities to its quantum development platform. Announced during the Quantum World Congress, the company revealed it has installed an NVIDIA DGX system at its EPB Quantum Center℠ in Chattanooga, Tennessee. This facility already houses the nation’s first commercially available quantum network and will soon host IonQ’s (NYSE: IONQ) Forte Enterprise Quantum Computer, scheduled for commissioning in early 2026. The move signals EPB Quantum’s ambition to position itself as a comprehensive national hub for quantum technology development and deployment.

How does EPB Quantum plan to use hybrid computing to accelerate energy grid optimization?

EPB Quantum’s first hybrid computing initiative will center on a collaboration with the Department of Energy’s Oak Ridge National Laboratory (ORNL), NVIDIA (NASDAQ: NVDA), and IonQ to optimize power grid operations. This initiative seeks to develop algorithms and methodologies capable of minimizing energy losses, reducing voltage fluctuations, and better balancing loads across electric grids. By combining the massive data-handling capability of classical supercomputers with the problem-solving potential of quantum machines, the project aims to create replicable models that could eventually be adopted by energy systems nationwide.

EPB’s decision to prioritize energy grid optimization builds on its deep legacy in smart grid infrastructure. Since 2009, EPB has operated what is often described as the most advanced automated energy grid in the United States, powered by more than 15,000 miles of fiber optic cable and thousands of automated sensors. This grid has generated trillions of operational data points, offering a uniquely rich dataset for training and testing new hybrid quantum-classical algorithms. According to ORNL leadership, their joint projects with EPB over the past decade have already helped translate emerging technologies such as grid automation and quantum-secure communications from concept into commercial practice, and the new collaboration is seen as an extension of that trajectory.

Why is the integration of classical and quantum resources considered a breakthrough for the sector?

Hybrid computing—where quantum processors work alongside classical high-performance systems—has been widely touted by industry analysts as the most viable near-term path to commercial quantum advantage. Quantum computers excel at solving highly complex optimization and simulation problems but remain limited by their qubit counts, noise levels, and error rates. By pairing them with powerful classical systems, companies can offload certain calculations and preprocessing tasks to conventional hardware while reserving quantum machines for workloads where they have a theoretical edge.

NVIDIA executives noted that this partnership offers a glimpse into the future of scientific computing, where enterprises and researchers will seamlessly switch between classical and quantum resources to achieve breakthroughs faster. IonQ leadership echoed this sentiment, emphasizing how their rapidly advancing hardware—paired with EPB’s real-world energy infrastructure and national lab expertise—can unlock practical, commercially relevant applications well before fault-tolerant quantum computers are fully realized. This blended model of computation could dramatically shorten the timeline for quantum return on investment across sectors like energy, logistics, and pharmaceuticals.

How does this initiative fit within EPB Quantum’s broader strategy to build a national innovation platform?

The hybrid computing addition is the latest milestone in EPB Quantum’s long-term strategy to create a fully integrated quantum development ecosystem. EPB Quantum Network®, launched in 2022, was the first commercially available quantum network in the U.S. and emerged from earlier collaborations such as the “QED: Quantum Ensured Defense of the Smart Electric Grid” project. That effort, conducted with ORNL, Los Alamos National Laboratory, and Qubitekk, demonstrated how quantum networking could be used to secure grid communications against cyberattacks. It earned a 2021 R&D 100 Award and eventually paved the way for IonQ’s acquisition of Qubitekk.

EPB executives have stated that by co-locating classical supercomputing, quantum hardware, and high-bandwidth networking in a single facility, the company hopes to lower barriers for startups, universities, and national labs to experiment with quantum technologies. This “sandbox” approach aims to accelerate commercialization by giving innovators access to production-grade infrastructure and real operational data rather than isolated test environments. Industry analysts suggest that if successful, EPB Quantum’s model could serve as a blueprint for regional quantum hubs across the U.S., driving local economic development while boosting America’s global competitiveness in quantum science.

What is the market sentiment around the key technology partners involved in this project?

Among the project’s key partners, IonQ has seen its stock (NYSE: IONQ) exhibit high volatility over the past year as investors weigh long-term potential against near-term revenue challenges. Shares recently rebounded after the company reported second-quarter revenue growth above analyst expectations and reaffirmed its roadmap to achieve quantum advantage by 2026. Market sentiment has shifted cautiously bullish, with institutional investors gradually increasing positions despite lingering concerns over cash burn and scaling costs.

NVIDIA (NASDAQ: NVDA), in contrast, continues to command strong market confidence. Its data center segment, which includes the DGX systems now deployed at EPB Quantum, has seen revenue growth of over 80% year-over-year on surging demand for AI and accelerated computing infrastructure. Analysts have consistently rated the stock as a “Buy,” citing its pivotal role in powering not only AI workloads but also emerging quantum-classical hybrid systems. The collaboration with EPB Quantum is seen as a strategic way for NVIDIA to extend its hardware and software stack into the nascent quantum space, further diversifying its growth engines.

Although EPB itself is a municipally owned utility and not publicly traded, its partnerships with high-visibility tech firms like NVIDIA and IonQ could indirectly influence investor sentiment toward those companies by showcasing tangible, near-term use cases for advanced computing technologies. This is particularly significant given that many institutional investors remain skeptical about quantum computing’s commercialization timeline. Successful pilot outcomes in EPB’s energy grid could help validate the sector’s economic case and potentially attract more capital inflows into quantum-focused equities.

Could this project shape future energy sector investment and policy directions in the U.S.?

The energy sector’s growing reliance on digitalization and data-driven operations makes it an ideal proving ground for hybrid quantum computing. Utilities are under mounting pressure to integrate renewables, manage increasingly complex grid dynamics, and harden infrastructure against cyber threats—all challenges that demand advanced computational approaches. By positioning its hybrid platform as a testbed for solving these systemic issues, EPB Quantum could influence not just technological development but also regulatory and investment priorities.

Analysts expect that if the EPB-ORNL-NVIDIA-IonQ collaboration demonstrates measurable improvements in grid efficiency or resilience, it could spur federal funding and private sector capital into similar initiatives nationwide. The Department of Energy has already signaled its support for public-private quantum collaborations, and state-level utility regulators are exploring incentive models for grid modernization projects. In this context, EPB Quantum’s hybrid approach could serve as a benchmark, guiding both policy frameworks and corporate strategies aimed at accelerating the U.S. energy transition while ensuring grid reliability.

As the project moves forward, its success could reshape investor sentiment about the pace at which quantum computing can deliver commercial returns. By anchoring its efforts in a mission-critical sector like energy, EPB Quantum is seeking to demonstrate that quantum innovation need not remain a distant frontier technology—it can drive immediate operational and economic value when tightly integrated with classical systems.