The telecommunications equipment firm breaks ground next week onthe project. It will allow employees scattered in 15 differentsites to join the new campus, increasing the number of Santa Claraemployees to 3,800 from 1,400.

The expansion will add two more buildings, the first of which isslated to be complete by December 2001. A company source says that$12 million will be saved in networking costs alone, sinceoperations will no longer take place out of separate buildings.

Nortel, based in Ontario, Canada, is North America'ssecond-largest telecommunications supplier. In the last two years,the company has spent in excess of $20 billion acquiring SiliconValley startups.

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