Up to 20 jobs will be created at the facility.
Asylum seekers will begin moving into the new Offaly direct provision centre later this week.
The Department of Justice says the first residents will arrive at the Marian Hostel Accommodation Centre in Tullamore over the next couple of days.
Up to 20 jobs will be created at the facility once it is up and running.
Fianna Fáil councillor Declan Harvey says the set up in the premises in town is excellent.