(Reuters) -U.S. quantum computing startup PsiQuantum said on Tuesday it broke ground for a facility at Chicago's Illinois Quantum and Microelectronics Park (IQMP), as it capitalizes on a fresh $1 billion funding round.

The facility, located at a former U.S. Steel South Works site, will serve as IQMP's anchor tenant and launch with the development of PsiQuantum's largest intermediate-scale quantum test system. 

The system will be evaluated by the Defense Advanced Research Projects Agency under the Quantum Benchmarking Initiative, a sign that government agencies will be closely watching the progress.

PsiQuantum is betting on a photonic approach, using semiconductor manufacturing processes and conventional telecom fiber, a route that offers solutions to some of the technical bottlenecks hindering rivals, the company said.

The Silicon Valley-based company said the new facility, if successful, will house the country's first million-qubit, fault-tolerant quantum computer.

The site will also eventually host quantum facilities from IBM, Australian firm Diraq and Colorado-based startup Infleqtion.

"From this site, we'll begin building out this campus as the epicenter of a massive quantum ecosystem," Illinois Governor JB Pritzker said in streamed remarks at the site on Tuesday.

PsiQuantum earlier this month disclosed a $1 billion funding round with participation from Nvidia's ( NVDA ) venture arm, which was one of the largest U.S. investments in quantum technology.    

The latest funding will also support development at a partner site in Australia and further work on its quantum photonic chips, the company said.