An artist's impression of what the new building will look like
Abertay University in Dundee has set its sights on becoming a centre of excellence for computer games education after receiving £3m of investment.
The Scottish Government money will be used to develop two new industry-designed postgraduate courses.
The cash will also go towards creating new studios and spaces for the students to work in.
Students have already designed computer programs which can be used by police, councils and health boards.
Abertay's principal Bernard King said: "The global, interactive, creative media sector has a potential market value to Scotland of up to $68bn by 2012.
"If in Scotland we are to be successful in reaping that economic growth potential, then we need to be continually producing new interactive products and upgrading our workforce's skills.
"It [the investment] recognises that Scotland can be a global leader in this sector, and that Abertay can drive that ambition by providing graduates with the necessary world-class skills to succeed."
Abertay has already been officially accredited by Skillset, the skills council for the creative media industries, as a Media Academy.
Paul Harris, professor of screen media at Abertay, said: "Not only does this accreditation acknowledge the prowess of our courses but going forward, it will provide recognition of the value and impact that our graduates can have when entering the computer games and interactive media workforces.
"Past graduates have gone on to work for leading animation companies such as Aardman and Disney while many have set up their own companies, with good success rates."