The government is promising millions of pounds of extra funding for Combined Universities in Cornwall (CUC).
About 2,400 extra student places are expected to be created by 2010
The estimated £21m will be used to create new higher education facilities at campuses across Cornwall.
Students will be able to choose from more than 50 new university-level courses, in addition to more than 400 courses already offered.
The cash will match European grant aid, resulting in a total of £55m for the expansion of the Falmouth-based CUC.
The government hopes that expansion of the CUC will lead to more than 2,000 extra jobs in Cornwall by 2025.
The extra money will lead to the creation of about 2,400 student places by 2010, with a total of more than 7,300.
Alan Livingston, Principal of University College Falmouth, said: "This is a tremendous endorsement for Cornwall and the CUC partnership.
"We have shown that we can deliver world-class facilities and education, and that we can attract outstanding staff and students.
"With this fresh support from the government, the Objective One Partnership and our other investors we will provide even more opportunities for students and businesses to build brilliant futures in Cornwall".
New developments include:
- Extra facilities at the University of Exeter in Cornwall and University College Falmouth.
- Higher education facilities at Cornwall College's campuses in Camborne, Newquay, Saltash and St Austell.
- Cornwall College's Duchy College campuses at Rosewarne and Stoke Climsland will also benefit from new buildings.
- Truro College will add the Fal building to its main campus, providing extra teaching, catering, learning resources and student facilities.
- Penwith College will receive investment for higher education facilities which will form part of its planned new Penzance campus.