The technology giant will occupy about 40% of the Grade II listed development, with 1,400 staff to be relocated to the complex in 2021.
In a statement, Apple said it was a "great opportunity to have its entire team working and collaborating in one location while supporting the renovation of a neighbourhood rich with history".
Battersea Power Station, a former electricity generator, has stood unoccupied for decades on the banks of the River Thames - with its four towering chimneys forming a prominent part of the city's skyline.
It has undergone a multibillion-pound restoration in recent years and Rob Tincknell, the chief executive of the development company behind the project, said he was "delighted" by Apple's decision.
Mr Tincknell added: "It is testament to our fantastic building and the wider generation of the 42-acre site which offers a carefully curated mix of homes, businesses and leisure amidst extraordinary open spaces and new transport links.
"It has always been our clear objective to create one of London's most thriving new communities and this commitment from Apple will undoubtedly help us achieve our goal."
Politicians have also praised Apple's move, with London mayor Sadiq Khan saying the relocation will help generate new jobs and economic prosperity for Londoners.
Chancellor Philip Hammond added: "It's another vote of confidence in the UK economy, sending a clear signal that companies are continuing to invest in Britain's future, and that we are one of the most attractive investment destinations for the global technology industry."
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