Factory 2050 will be the first development in an extension to Sheffield Business Park.
The circular building will house a range of technologies, including advanced robotics, flexible automation, unmanned workspace and 3D printing.
Plans for Factory 2050 were submitted to Sheffield City Council at the end of January and a decision is expected by April.
A detailed master plan for the entire 50 acres will be submitted to Sheffield City Council’s planning department in the Spring.
Keith Lilley, the University’s Director of Estates and Facilities Management, said: “Today’s deal opens the door to a fantastic opportunity which will allow us and our many partners the chance to build a hub of activity which will bring an enormous boost to the region.
“An independent survey of the economic benefits has demonstrated that, during construction, Factory 2050 will directly contribute £6.4m to the local economy and create 162 jobs, with a much wider indirect economic impact.”
Sheffield Business Park Managing Director Graham Sadler added: “The University’s commitment is fantastic news, both for the business park and the city region. A landmark development in its own right, it will also act as a catalyst for our Phase 2 extension, which will include advanced manufacturing enterprises.”