Once built, the 3,500 sqm facility in Bayswater will be the only original equipment manufacturer facility in Western Australia with a 1.5 megawatt test bench that can test complete drive systems up to 6.6 kilovolts.
Flender Australia chief executive and managing director Kareem Emara said relocating would allow the company to centralise operations and get closer to customers in WA.
"Western Australia has been an excellent market for us in the recent years [so] it's only natural for us to reinvest in this key market and be where our customers are to offer them the combined brains trust of more than 50 facilities worldwide through this new state-of-the-art centre."
Emara said the facility would also be designed to cater for projected growth in geared wind turbines over the next couple of decades.
"While COVID-19 has presented challenges to Australian economy, we take a long-term view and are confident in our expansion plans to help set up the right support structure for the nation's critical energy infrastructure and industry," he said.
"Having been in WA for more than 40 years, our view is and always has been long-term."
Flender, a subsidiary of Siemens, spent A$5 million on a service centre in Rockhampton in 2017.