WORK started yesterday for two businesses to move into a Newport factory which has laid empty for more than ten years.

Next Generation Data Centre has taken over the former LG building known as Newport’s “white elephant” as part of a £200 million project.

The building was originally built as a semi-conductor plant and promised to bring thousands of jobs to the city.

But it has never been used up until now.

The deal was finalised two months ago and the three-floor 75,000 square building has been converted and upgraded.

The company received planning permission and made the necessary alterations to the access road.

It holds a long-term lease on the building and the whole construction will cost around £200 million.

This investment is from the company’s co-founders and RBS Lombard.

Next Generation Data Centre also received a small amount of development funding from the Assembly to finish certain work.

It is now one of Europe’s largest data centres and two companies will start operating from the site in January.

These are one of Europe’s largest telecommunications companies and one of its largest systems integrators.

It is also negotiating with several other organisations and expects to have between 15 and 20 customers within the building who will each employ between five and ten of their own employees.

There are currently between 60 and 80 construction workers on site and the company itself expects to have between 100 and 120 full-time highly-skilled employees over the next three to five years.

Security fencing, bomb-proof glass, infra-red detection and ex-special forces security guards have been installed at the site.

The centre is supplied directly from the national grid and can generate enough electricity to power a city the size of Bristol.

It has a number of separate data halls, office space for technical support and administration teams, and meeting rooms and conference suites.

Chairman and co-founder of the company, Simon Taylor, said: “In a very tough economic climate we are delighted to have come through on time and on budget with the first critical phase of this extensive project.”