Victorian technology minister, Gordon Rich-Phillips, has announced that telecommunications provider, Telstra is investing $100 million in a new Cloud centre in the south-eastern suburb of Clayton.

The investment is predicted to create 500 jobs during the construction period.

Read more in depth Telstra stories

Having toured the site earlier this week, Rich-Phillips said, "This $100m investment by Telstra is part of the company's continuing $800m investment in Cloud computing which will deliver significant economic benefits for the Clayton area and increase activity in the broader Victorian economy."

"Once complete, the 2,000 square metre cloud centre will provide a modern facility that will house Telstra's future revenue generating platforms, such as enterprise cloud services, and showcase the latest data centre design and energy efficiency."

Rich-Phillips also said, as a result of businesses demand for Cloud solutions, the Victorian Coalition Government is assisting ICT companies through a $85m industry plan.

"Over the past two years, the Coalition Government has helped facilitate more than $600m in datacentre investment in Victoria," he added.

Follow Nermin Bajric on Twitter: @nermin_au