12 November 2025

^{Microsoft's Majorana 1 chip (photo: Microsoft)}

 

Microsoft is putting Europe at the centre of its next big leap in quantum computing.
The company announced it will build a second quantum research lab in Lyngby, just outside Copenhagen, making Denmark home to Microsoft’s largest quantum site worldwide. Together, the two buildings will act as a single campus dedicated to developing new kinds of quantum chips — the foundation of a technology that could one day outperform even the fastest supercomputers.

The expansion represents more than 1 billion Danish kroner (around $156 million) of investment and deepens Microsoft’s ties to Denmark’s growing quantum technology ecosystem. It also connects to a broader national effort — the Magne project, backed by the Novo Nordisk Foundation and EIFO — which aims to make Denmark a European hub for quantum innovation in chemistry, medicine, finance and climate modelling.

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Why Denmark — and why quantum computing?

Quantum computing is one of the most ambitious frontiers in technology. Instead of processing information using simple ones and zeros, quantum computers use qubits — units that can represent multiple states at once. In theory, this allows them to solve extremely complex problems far faster than conventional computers.

The challenge is that qubits are fragile. They’re easily disturbed by noise or temperature changes, which leads to errors. Microsoft’s research team has spent years developing more stable qubits using innovative materials that shield the delicate quantum states — essentially adding “insulation” at the atomic level.

That research is centred in Denmark. Microsoft has collaborated with the Niels Bohr Institute at the University of Copenhagen since the late 2010s. The new Lyngby lab will focus on advancing a prototype chip called Majorana 1, first introduced in early 2025. The design is based on so-called topological qubits, which could be smaller and less error-prone than other leading quantum approaches.

While the science remains experimental, the goal is clear: to turn years of fundamental research into scalable, manufacturable quantum hardware — something that can be built reliably and at industrial scale.

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Microsoft’s broader quantum computing strategy

Quantum computing isn’t an isolated project for Microsoft; it’s part of a broader AI and cloud computing strategy.
The company already offers Azure Quantum, a platform that allows businesses to experiment with quantum algorithms and connect to hardware built by partners like Quantinuum and IonQ.

It has also launched Azure Quantum Elements, combining artificial intelligence, high-performance computing (HPC) and quantum tools to accelerate research in materials science and chemistry. These services allow companies to explore quantum-inspired workflows today — without owning any hardware.

In parallel, Microsoft is improving the reliability of existing systems. In collaboration with Quantinuum, it recently reported a major advance in error-corrected logical qubits — a key milestone toward practical, fault-tolerant quantum computing.

Microsoft’s plan has two clear tracks:

• Cloud and AI solutions now: deliver value through Azure Quantum and Quantum Elements.

• Quantum hardware for the future: develop new chip architectures like Majorana 1 to make scalable quantum computers possible.

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A boost for Europe’s quantum ecosystem

Europe has quietly become a key player in the quantum technology race. The EU Quantum Flagship, launched in 2018, has channelled €1 billion into research, while national initiatives such as the Netherlands’ Quantum Delta NL and Denmark’s Magne programme have added hundreds of millions more.

Microsoft’s new quantum lab in Denmark fits neatly into this growing European ecosystem.

• It strengthens Europe’s talent base, drawing physicists, engineers and materials scientists to a thriving innovation hub.

• It supports local suppliers in nanofabrication, cryogenics and precision electronics — vital for Europe’s ambition to develop its own quantum supply chain.

• And it provides direct access for European businesses to quantum and AI tools through Azure Quantum, hosted within EU data governance frameworks.

For EU policymakers, this is exactly the kind of private-sector investment they’ve been seeking: major global players turning European research excellence into long-term industrial capability.

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Managing expectations: progress, not hype

Quantum computing is famous for its big promises — and Microsoft’s approach has drawn both optimism and caution.
The company’s focus on Majorana qubits has sparked debate among scientists about how close the technology truly is to practical use. Many experts agree the progress is real but stress that independent validation will be key.

Microsoft is upfront that its quantum computing roadmap is a long one. Its staged plan — from “Foundational” systems today, through “Resilient” (reliable logical qubits), to “Scale” (fault-tolerant quantum computers) — stretches over several years.

In the meantime, AI and quantum simulations are already helping industries like pharmaceuticals, energy and advanced materials. Through Azure Quantum Elements, companies can speed up drug discovery or battery research using a mix of AI models, HPC, and quantum-inspired algorithms.

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A signal of long-term commitment to Europe

Microsoft’s latest quantum investment in Denmark arrives as Europe works to strengthen its digital sovereignty and attract deep-tech funding. Although the continent leads in academic research, it still captures only a small share of global private quantum investment — roughly 5% by some estimates.

That makes this expansion strategically important. It positions Europe not just as a collaborator, but as a core manufacturing and research hub for one of the world’s largest technology companies. It also aligns with EU ambitions to develop a sustainable quantum computing ecosystem, where public and private initiatives reinforce each other.

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The road ahead

For now, the new Lyngby quantum campus will focus on refining materials, devices and engineering processes — bridging the gap between laboratory breakthroughs and reproducible technology.

At the same time, enterprises can already benefit from quantum-ready AI tools through Azure Quantum, building the skills and workflows that will prepare them for the next era of computing.

Whether Microsoft’s Majorana 1 chip ultimately delivers on its potential remains an open question. But Europe has already gained: in talent, infrastructure, and global influence. For Microsoft, it’s a long-term scientific bet. For Europe, it’s another step toward becoming a genuine quantum powerhouse.

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Editor’s note

This article draws on reporting from Reuters, Microsoft’s official quantum computing roadmap, and recent EU and national funding announcements. All figures are accurate as of November 2025.