Newcastle University is opening a research and development centre specialising in cloud computing.
The centre, which will receive funding from Linux software maker Red Hat will also research grid computing, virtualisation and middleware.
Initially two researchers will work on projects run jointly by Red Hat and Newcastle University, but the team will be expanded.
The School of Computing Science at Newcastle University has carried out research into distributed computing for 20 years.
Paul Watson, professor of computer science at Newcastle University, said the research done on distributed computing can be applied to new technology such as cloud and grid computing.