The new resource, housed at the University's Advanced Computing Facility at Easter Bush, will be integral in aiding discoveries in medicine, climate science and aerospace. It will also build on previous British breakthroughs in targeted treatments for arthritis and HIV.
The University will work with United Kingdom Research and Innovation (UKRI) to install the high performance computing service over the next year.
ARCHER2 is part of a GBP 200 million investment by HM Treasury, which will be at the core of its Spring Statement.
Ensuring the UK is at the forefront of science and technology innovation will be featured in the statement by the Chancellor of the Exchequer, Philip Hammond.
Other projects to benefit include GBP 45 million to support genetic research in Cambridge and GBP 81 million for laser technology at Harwell Campus in Oxfordshire.
The new supercomputer replaces the GBP 43 million ARCHER - Academic Research Computing High End Resource - system, which is capable of more than one million billion calculations a second.
It was unveiled in 2013.
"ARCHER2 will provide UK science with an unparalleled capability to model and simulate the world around us. This is a real vote of confidence in the University's supercomputing centre, EPCC, which is internationally recognised for its excellence in computational science", stated Professor Mark Parsons, EPCC Director.