The project, which will combine equal investments from Microsoft, the Queensland University of Technology (QUT) and the Queensland government over a period of three years, will help build one of only 12 similar facilities around the world.
John Warren, University Relations Manager for Microsoft Research Asia said Microsoft had chosen to make the investment because the University had proven its pedigree in quality research.
"We know the investment that the state government, QUT and Microsoft is making in this research lab will deliver tangible benefits -- because of the track record of the QUT people," Warren told ZDNet Australia.
According to Warren, Microsoft and QUT have been working together for six years and started preparing for the building of a dedicated research facility around a year ago.
"Over the last 12 months or so we have been working towards creating this research lab in QUT and it is really the culmination of a lot of years effort from the scientists at QUT and the scientists at Microsoft, who are working well together," said Warren. "At the end of the day that is what research is about".
Professor Arun Sharma, Deputy Vice-Chancellor at the QUT, agreed: "The computing power of this new e-research lab will enable scientists to use their brilliant minds for what they do best -- research," he said in a statement.