The laboratory will be focused on big data, and look at maximising the potential of the Internet of Things through future technology such as 5G.
Additionally, the company will look for partners to set up an innovation laboratory in Christchurch.
The plans were revealed following a meeting between New Zealand Prime Minister Bill English and Huawei founder and chief executive Ren Zhengfei on Tuesday.
"New Zealand's open and fair trade environment, and its emphasis on developing new technology, facilitates our ongoing commitment," he said.
"New Zealand has rich tourism resources, and highly developed agricultural and trade sectors. Digital transformation empowered by advanced ICT technology can enable New Zealand to become better connected with the world, and transform its traditional strengths into driving forces of economic growth."
In other announcements, Huawei's Seeds for the Future programme is to expand to 100 New Zealand undergraduate students by 2022. Students travel to China and learn about cutting-edge technology and participate in cultural exchanges under the programme.
Huawei also plans to open a regional office in Wellington, purchase more goods and services locally, and help local businesses integrate into its global supply chain network.