Global tech giant Google will establish a presence in Adelaide's Lot 14 technology hub.
Google will operate its cloud services public sector team from the site and Premier Steven Marshall says the move will enhance SA's growing hi-tech reputation and create jobs.
"South Australia has world-leading capabilities in artificial intelligence, data analytics and cyber security that make us globally interesting and provides digital tech companies with an opportunity to come together to partner on projects that can literally change the world we live in," Mr Marshall said on Sunday.
Trade and Investment Minister Stephen Patterson said South Australia was rapidly becoming one of the best places to do business globally.
"We are building a world-class innovation ecosystem that's underpinned by a competitive business environment that gets the fundamentals right for all businesses," he said.
"Google Cloud joins a line-up of international hi-tech companies investing in South Australia in recent years including Accenture, Amazon Web Services, and MIT.
"By working closely with industry to enhance our hi-tech capability across key sectors, we are attracting the best of the best from around the world."
Google's Adelaide operations will be headed up by Mike Duhne who said SA's commitment to the technology sector provided a unique environment for innovation and collaboration.
Opposition Leader Peter Malinauskas said Google's investment was welcome and he hoped it led to a growing presence for the company in SA.
Australian Associated Press