Constantine moved the capital of the eastern part of the Roman Empire from Nicomedia (in northwestern Turkey) to the nearby Byzantium, which he redeveloped, renamed Constantinople (city of Constantine) and inaugurated in 330. This new capital was given titles such as "The New, second Rome,' 'Eastern Rome,' 'Alma Roma,' and 'Roma Constantinopolitana.' Propaganda-wise the new capital symbolised the new dawn of the Roman Empire which Constantine rule would usher in.
Ancient historians did not actually clarify why Constantine the Great moved the capital of the eastern part of the Roman Empire from Nicomedia (in north-western Turkey) to the nearby Byzantium. One reason might have been that Nicomedia had been designated as the capital of the eastern part of the Roman Empire by the emperor Diocletian who had unleashed the Great Persecution of Christians.
A highly likely reason was Propaganda, which Constantine was very good at. He even invented a fictitious descent from the family of a previous emperor.to give legitimacy to his quest for power. A new capital named after himself would give him further prestige and act as a symbol of the new dawn for the empire his rule would usher in. Constantine redeveloped the Greek city of Byzantium and renamed it Constantinople (which means the city of Constantine) in 330. The city was also given titles such as "The New, second Rome,' 'Eastern Rome,' 'Alma Roma,' and 'Roma Constantinopolitana.' Byzantium has seven hills like Rome. This created a similarity with Rome and justified the titles mentioned above.
Originally Constantine considered Sirmium (in modern day Serbia) for his new capital. Then he opted for Byzantium. Other factors may have helped this choice. This city was on the route between Europe and Asia like Nicomedia, but it was in a better strategic position. The roads from south-Western Europe to Asia converged there. It was on the Bosporus, the strait between Europe and Asia, and between the Mediterranean and the Black Sea. Therefore, it also controlled the naval route between these two seas. It was also a city easy to defend. It was on a promontory into the Bosporus. Therefore, it had water on two sides. The Golden Horn, an inlet of the Bosporus meant that there was water on the third side as well. The hilly terrain helped to defend the part of the city which was not on the seafront or by the Golden Horn.
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