Developer Caddick Group started work on the new facility on land just off junction 33 of the M62 in Knottingley on Tuesday.
The warehouse is part of the developer’s £100m Cross Point development scheme and it is being built for retailer TK Maxx.
The project is being delivered by Caddick Developments Limited and the work is being carried out by its sister company Caddick Construction.
Caddick Developments’ managing director Myles Hartley said: “We are delighted work has now started on site on this major new project.
“It will provide a huge investment boost and many much needed jobs to the area.
“We are grateful for the support of various partners, especially Wakefield Council who have helped bring this exciting scheme to fruition.”
The warehouse is expected to be built by January 2017.
As part of the plans Normanton’s TK Maxx warehouse will close and the company will move its 461 staff employed there to the facility.
Wakefield Council’s planning and highways committee approved plans for another warehouse to be built by the developer at the Knottingley site in June this year.
A Caddick Group spokesman said there is space for further development and another facility could be built in the future.
Coun Denise Jeffery, the council’s cabinet member for economic growth and skills, said: “It is absolutely marvellous for Knottingley and the whole five towns area, particularly following the job losses at Kellingley Colliery and Ferrybridge Power Station.
“That site was prepared after the job losses were announced and we put a lot of effort in to making sure we had something to help minimise the impact. We think the development will really make a difference.”
The Cross Point development scheme has been supported by the Leeds City Region Enterprise Partnership (LEP).
Roger Marsh, chair of the LEP, said: “This is an important investment to bring new jobs and economic opportunities into Wakefield and the surrounding areas.
“The LEP grant supports the high initial costs of providing roads and services on this strategic site, not just to support the retention of TK Maxx, but also to help the development and job creation for the second phase, opening up a wealth of further investment opportunities for the future.”
US retailer TJX owns TK Maxx.
TJX Europe’s group operations director Paul Hunter said: “This is an exciting moment in the future growth of TJX Europe.
“We are delighted that we will continue to be part of this community, welcoming our existing associates to the new processing centre and creating many additional employment opportunities over the forthcoming years.
“We look forward to being open for business in 2017.”