The centre will host teams of engineers that will work to quicken the development of Microsoft's Live Search product and aim to offer consumers an attractive alternative to Google.
The UK is being considered as the location for the centre, which will be based on Microsoft's Beijing search technology centre, established in 2005.
Kevin Johnson, president of the platforms and services division at Microsoft, said that the firm wasn't where it would like to be in search in Europe and that it can offer more to the huge audiences it reaches online.
Johnson is due to announce the plans this morning at the Cannes Lions International Advertising Festival in what will be the second major Microsoft search development since Yahoo rebuffed its approaches.
The technology centre will add to Microsoft's plans to offer users cash back on purchases they make through its search engine.
.jpg)
.jpg)