Plusnet, the Sheffield-based leading UK telephone and broadband services provider, is to open a centre in Leeds.
The company, which employs 850 people at its headquarters in The Balance, on Pinfold Street, says it remains committed to Sheffield.
However, it needs a site outside the city to ensure business continuity in case of an emergency such as a power cut or severe weather conditions.
Chief executive Jamie Ford said: “Sheffield will remain our flagship building and our only 24/7 operation for the time being.
“The intention is that both sites will grow over the coming years. The new building gives us extra resilience as a business and I am happy that this site reaffirms Plusnet’s commitment to Yorkshire.”
Plusnet aims to employ 100 people in Leeds by the end of March 2014 and to increase that number to 250 over the next three years.
In addition to creating new jobs, Plusnet plans to introduce an apprenticeship programme at its sites in Sheffield and Leeds, running alongside its graduate programme and an in-house fast track scheme called, Plusnet’s Got Talent.
Jamie Ford said: “Plusnet is committed to finding new talent and nurturing this within a commercial environment.
“We have made some strong relationships in higher education in Sheffield and are looking forward to now extending these relationships within Leeds.”
Plusnet was created in 1997 with the aim of taking a new approach to providing internet-based services and offering them at lower cost.
The company has been recommended by Which? the UK independent consumer body, four times in a row.