A new A$89 million state-of-the-art data centre will be built in Melbourne's western suburbs.

This will create up to 450 construction jobs and 35 ongoing full time roles.

The massive investment cements Victoria's reputation as a regional centre for data security and cyber security excellence and will strengthen the state's digital economy.

Leading global tech company Digital Realty will establish the new 8,000 square metre Connect@Scale facility, locating it next to the company's existing Deer Park Data Centre.

Design and planning are underway for Digital Realty's third data centre in Victoria – making the company the largest provider of data centre services across the state.

This will enable the company to meet surging demand as local and international corporations and small to medium sized enterprises turn increasingly to cloud-based information communication technology systems.

The Victorian Government has supported Digital Realty's need to reduce power and operational costs at their existing data centres.

Victoria hosts nearly a quarter of all data centres in Australia, with a digital technology industry that now generates more than A$34 billion in annual revenue and employs more than 91,300 people across the state.

This investment also follows moves to Victoria by a growing list of data and cyber security companies including the country's National Broadband Network (NBN).

NBN announced last year that it would be establishing a national Cyber Security Operations Centre in Victoria which would create 700 new jobs over the next five years.

Digital Realty holds more than 139 properties in over 32 markets throughout Europe, North America, Asia and Australia, exceeding 2.3 million square metres of data centre space.