The US-based company will lay down fresh roots at Charter Hall's new office development on Collins Street once it is completed.

The first tower at 555 Collins Street is expected to accommodate about 4500 workers and create more than 1500 construction jobs.

Approval for the two-tower project was fast-tracked last May by a state government taskforce established to revitalise the local economy during the COVID-19 pandemic.

Treasurer Tim Pallas, Melbourne Lord Mayor Sally Capp and project partners on Wednesday turned the first sod of what will become 84,000 square metres of space for offices and more than 2300sqm for retail.

"This investment will contribute billions of dollars to the Victorian tech economy in the next 10 years, cementing our position as the innovation state," Mr Pallas said.

With lockdowns leaving Melbourne's CBD largely deserted in 2020, Amazon Web Services' Australia and New Zealand managing director Adam Beavis said the company was excited to be part of the city's reinvigoration.

"Melbourne has a rich community of innovators, and we are looking forward to bringing Amazon's growing local workforce to 555 Collins Street so we can continue to invent and innovate on behalf of customers," he said.

It further expands Amazon's footprint in Victoria after the online behemoth last year announced it would open a second distribution centre at Ravenhall in Melbourne's west by late 2021.

Australian Associated Press