Google commits $736 million in Australia after threatening to withdraw.

Google plans to invest a billion Australian dollars ($736 million) in Australia over the next five years, just months after threatening to withdraw its services from the country in response to tougher government regulations.

On Tuesday, Alphabet Inc's main operating unit announced plans to expand cloud infrastructure, establish a research hub staffed by Australian researchers and engineers, and collaborate with science agency the Commonwealth Scientific and Industrial Research Organization (CSIRO).

Google Australia Managing Director Mel Silva, who threatened to block Google's search engine in the country earlier this year, said the spending plan would bring significant technological resources and investment.

Prime Minister Scott Morrison, who attended the funding announcement in Sydney, said it was a "A$1 billion vote of confidence" in Australia's digital economy strategy, which aims to place the country among the top ten digital economies in the world by 2030.

"Google's decision has significant benefits for Australian businesses as we engage in the economic recovery," Morrison said.