what is new() in Typescript?

new() describes a constructor signature in typescript. What that means is that it describes the shape of the constructor. For instance take {new(): T; }. You are right it is a type. It is the type of a class whose constructor takes in no arguments. Consider the following examples

function create<T>(c: { new(): T; } ): T {
    return new c();
}

What this means is that the function create takes an argument whose constructor takes no arguments and returns an instance of type T.

function create<T>(c: { new(a: number): T; } ): T

What this would mean is that the create function takes an argument whose constructor accepts one number a and returns an instance of type T. Another way to explain it can be, the type of the following class

class Test {
    constructor(a: number){

    }
}

would be {new(a: number): Test}

The new keyword is used to create an instance of a class, so in it's simplest form:

class SimpleClass {
}

Would be constructed as follows:

let simpleClassInstance = new SimpleClass();

This is all well and good, but how do you create an instance of a generic class, i.e:

class SimpleClassFactory< T > {
    static create( T ) {
        return new T(); // compile error could not find symbol T
    }
}

Would be used as follows:

let simpleClassInstance = SimpleClassFactory.create(SimpleClass);

Here, we are attempting to use the class definition to create an instance of a class. This will generate a compile error.

So we need to refer to the type by it's constructor signature:

class SimpleClassFactory< T > {
    static create( type: { new(): T ;} ) {
        return new type(); // succeeds
    }
}