It is hoped the former Cold War bunker can be preserved.
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More than £800m is to be spent over 25 years to refurbish and manage Ministry of Defence (MoD) communication facilities at Corsham, Wiltshire.
The centre will improve communication systems for the armed forces wherever they are deployed in the world.
It will also work with English Heritage to preserve the former Cold War bunker built in miles of tunnels underground.
The private finance initiative includes upgrading facilities at the nearby Basil Hill communications base.
'Intelligence gathering'
Alan Bosley, chair of Corsham Parish Council said the development was "potentially extremely good news" for the town.
"The development is much more to do with providing the infrastructure for defence communication. It's a really exciting project," he said.
The communication facilities will be used by the Defence Communication Services Agency (DCSA) to contact military personnel working on operations such as peacekeeping, sea lane protection, intelligence gathering, counter narcotics and humanitarian aid operations.
The construction programme is scheduled to start towards the end of 2007. The major building work will take place in the first three years, and all buildings should be complete by the end of 2010
It is hoped the work will secure and potentially generate employment in the town
Inteq has been selected as the preferred bidder for the Corsham Development Project and the award is subject to approval and contract.