When the building is complete in late 2023, it will be one of about 30 of the group’s new “future-fit” offices in the UK.
The new Tayside office will be located at West Marketgait in the heart of the city centre, close to the waterfront and part of a £1bn regeneration area that already features the V&A Dundee gallery.
BT currently has an office at Ward Road in the city, where some 1,000 employees are based. It was opened in 1976.
The new building will include what the designers have described as a “street landscape”, with areas for colleagues to socialise while enjoying views over the city and the River Tay.
Bosses said the investment in the new building would help transform the way the business works, “create efficiencies and enable it to better serve its customers”.
Teams based in Dundee include those providing customer service support to BT’s full fibre customers and small businesses.
Since last year, the company handles all of its consumer customer service calls at contact centres in the UK and Ireland. It has recruited hundreds of people in Dundee in the past four years.
Jane Wood, BT Group Scotland director, said: “This is exciting news for my colleagues in Dundee and reflects BT’s continued investment in Scotland.
“As one of the largest employers in Tayside, we know that this investment will be welcomed by many people, not least my colleagues who will be based at this brilliantly designed new office.
“We’re pleased that Dundee, an iconic Scottish city, will remain home to nearly 1,000 frontline workers who help customers right across the UK, every day.
“My colleagues have done an amazing job ensuring that our customers have stayed connected during the Covid -19 pandemic, with some choosing to remain working on site, while other colleagues have chosen to work from home.
“We look forward to welcoming staff into our new building when it’s complete.”
Michael Smart at property developer Crucible Developments said: “The site is undoubtedly one of the best in Dundee and we are extremely proud of the building our team have created.
“We hope to commence construction as soon as possible and, once completed, the development will bring a prominent brownfield site back into use and further increase the vibrancy of Dundee city centre.”
John Alexander, leader of Dundee City Council, added: “Today’s announcement by BT is a huge vote of confidence in the city and in our plans for the future.
“It is clear that BT shares our vision for a Dundee that has a strong and sustainable economy providing jobs, retaining more graduates and making the city a magnet for new talent, while at the same time offering real choice and opportunity in a place that has tackled the root causes of social and economic exclusion.”
Under a five-year programme announced in 2018, BT is to consolidate its UK footprint of more than 300 locations to around 30.