WATERLOO, Ont. - Ontario is investing $18 million into nanotechnology and quantum computing research.

The funds will go towards the new Quantum-Nano Centre at the University of Waterloo.

Premier Dalton McGuinty made the announcement Monday at the groundbreaking for the $160-million facility.

McGuinty says the money will help the centre buy new research equipment.

Considered the first of its kind in the world, the centre will house the university's Institute for Quantum Computing, the Waterloo Institute for Nanotechnology and its undergraduate program in nanotechnology engineering.

The five-storey, 900-square-metre building is expected to be completed by 2011.