Google will open a new office in London's "Silicon Roundabout" that will serve as a launch-pad for startups and developers.
The company has signed the lease for a seven-storey building on Bonhill Street near the Old Street roundabout, which will act as shared space for a host of internet companies where advisers from Google and other organisations will support technology entrepreneurs.
Google will retain its central London offices and said that they would announce more details about the organisations they'll work with and how they will use the space over the coming months.
The centre is not due to open until next year.
Chancellor George Osborne said that the move was "great news" for British business. "It shows that we can create the right environment to attract startups and established high-technology businesses, supporting our programme to create new jobs, diversify the economy and create longterm economic growth," he said. "This shows that Britain is open for high-tech business."
Last November Prime Minister David Cameron revealed his ambition for the "Silicon Roundabout" technology centre to rival California's Silicon Valley, with the scheme backed by £400 million in central funding and supported by Facebook, Intel, Cisco, Vodafone and Google.