The National Construction College in Bircham Newton aims to update its old facilities to create a modern college to train the next generation of building and civil engineering trades.
Ground has just been broken on the £5.2m first phase which will include two accommodation blocks and an energy centre with a biomass boiler to power the new buildings.
The total project, consisting of eight phases, should be finished by 2020.
Other stages in the project include a third accommodation block, a youth welfare block, sports facilities and an area to provide hands-on construction experience for students.
East of England Development Agency, Skills Funding Agency and the Construction Industry Training Board are funding this initial building phase.