As Ireland wooed Twitter to set up its office in Dublin, the British government has persuaded Google to start a major tech hub in London. The target was, of course, to create more jobs.

The British government says Google will start a multimillion-pound "Technology Community Center" in London's East End.

The seven-floor office will offer a shared space for emerging Internet organizations based in the heart of London's "Sillicon Roundabout," the Internet giant told The Guardian.

Prime Minister David Cameron first mooted the idea of setting up a competitor to the U.S.'s Silicon Valley in November last year, a move supported by £400 million in government funding and support from technology giants such as Cisco, Google, BT and Facebook.

Google said the Bonhill Street office would be refurbished before it opens in 2012. The space will be largely used as a training workshop, the company said.

"Finding a suitable building is the first major step and we hope to announce more details about the organizations we will work with and how they will use the space, in the coming months. East London is already home to hundreds of innovative British start-ups and has huge potential for economic growth and new jobs, over the coming years," said David Singleton, engineering director at Google UK.

"(It is) great to see companies talking about supporting Tech City actually moving ahead and doing it in a real way," Elizabeth Varley, the co-founder of TechHub added.

The announcement to set up a center in East End came after Twitter dismissed its plans of opening their European office in London. The social networking giant will, instead, set up office in Dublin. The move was widely seen as a blow to Cameron's Tech City plans.

Earlier, Google Chromebook was launched as the 3G connectivity partner with mobile operator Three in May this year.