The centre will be the HQ for its Watson iOt unit and is intended to bring 1,000 IBM developers, consultants researchers and designers to work on cognitive computing and the internet of things.
IBM said it is its biggest investment in Europe for over 20 years.
The company said the centre will offer Watson APIs and services on its iOt Cloud Platform.
The idea is that academics, customers, startups and silicon and device vendors to direct access its cloud based services. It expects automotive, electronics, healthcare, insurance and industrial manufacturers to take advantage of the centre.
IBM believes that although the internet of things will become the biggest data mountain on the planet, 90 percent of that data just hangs around, unused.