Described by the company as an "advertising sculpture", the billboard features 32 custom-made convex and concave, high-definition LED screens. It is due to be unveiled on July 1 replacing the current billboard, which features the world's largest Coca-Cola bottle.
The company plans to use the billboard to promote Coke Classic, Diet Coke and its new mid-calorie beverage C2.
The first display will be a tribute to New York City called 'The Time Machine', and show the changing landscape of the city along with images of Coca-Cola from the past 80 years. The three-minute video will run on the hour, every hour.
Javier Benito, chief marketing officer at Coca-Cola North America, said: "The new Coca-Cola display represents the intersection of cutting-edge technology, advertising innovation and entertaining content.
"Given the location of this sign at the world's most famous crossroads, the new display provides an experience and projects an image that is globally relevant."
The move follows the construction last year of an "intelligent billboard" in London's Piccadilly Circus, which can appear to ripple if it is windy, and show raindrops when it rains.
Coca-Cola has had a presence in Times Square since 1920 and first added neon lighting in 1923. The new display has been developed by more than 40 engineers and designers.
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