"Lessons from conflicts including Ukraine have demonstrated the real-world value of gaming technology in training drone operators and enhancing cyber capabilities," said General Tom Copinger-Symes, deputy commander of cyber and specialist operations command.
The games would "strengthen our warfighting readiness" while building partnerships with allied nations "who share our commitment to technological innovation in defence", he added in a Ministry of Defence statement.
The British military officially recognised Esports as a sport last year.
Around 40 nations including Canada and Poland will take part in the International Defence Esport Games (Ideg).
After several knock-out rounds, the final will be held in October 2026 at a new venue dedicated to video games and Esports in northeastern Sunderland.
The venue has been developed by the British Esports Federation, a competition partner, the ministry said.
Veterans minister Louise Sandher-Jones said the "nature of war is changing, and we must change with it".
"Our personnel must be as skilled in cybersecurity and with controllers as they are in traditional combat," she added.
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