The technology centre would be home to hundreds of software and artificial intelligence (AI) engineers, the company said. Dyson said it had chosen Bristol because it was an "international hub for software and digital skills".
The centre is planned for a Dyson-owned building opposite Castle Park, close to Bristol Bridge. Teams at the site will work on developing appliances due for launch up to a decade in the future.
Jake Dyson, son of founder Sir James and the company's chief engineer, said the centre would focus on sensors, apps and "connectivity" in future products. He said such technology would transform how the company supported customers, and allow it to continuously assess the performance of its machines. "The new Dyson Technology Centre in Bristol will be a vital hub contributing to Dyson's connected future," he said.
Dyson already has an office in Bristol with about 100 tech specialists, with the new centre creating hundreds of new jobs.
Ben Shorrock, managing director of networking agency TechSpark, which promotes Bristol as a hub for tech investment, said the city had a "melting pot" of skills which engineering firms needed. According to TechSpark's research, Bristol has around 28,000 specialist tech workers and the industry is worth £1.7bn to the regional economy.
He said: "Bristol continues to be a leading place for tech businesses and people. Its unique mix of historic industries from the creative, showcased in organisations like Aardman Animations and the BBC, to engineering through businesses like Hewlett-Packard and Airbus, means we're a melting pot of the skills needed in developing cutting-edge tech."
"Future technologies like robotics, sensors and AI all need expertise in data, hardware and design, so it's no surprise global businesses are looking here for their research and development centres."