State taxpayers will spend more than $5 million subsidising a new IT hub in Modbury in Adelaide's north-east on the promise it will create hundreds of jobs.

Australian company Datacom group will refurbish part of the Tea Tree Gully TAFE SA campus to accommodate more than 600 full-time equivalent staff.

Minister for Investment and Trade Martin Hamilton-Smith said the site will be developed over the next six months and will provide a range of IT-based services to clients in South Australia and elsewhere.

"Datacom's facility will revitalise the Tea Tree Gully TAFE SA campus, adding to the vibrancy of the Modbury precinct and helping to enrich local retail, residential and transport opportunities," he said.

The State Government will contribute $5.335 million to the centre from its Economic Investment Fund.

Datacom's chief executive officer Jonathan Ladd said as part of the arrangement, the company will partner with TAFE SA.

"Our partnership with TAFE SA will ensure the delivery of an innovative training package which will provide our company with a clear training-to-job pathway for potential new employees, and benefit the state economy as a whole," Mr Ladd said.