Caledonian will be working with ENGIE to provide Hereford College of Arts and the city’s new NMiTE University with 178 student bedrooms.
Caledonian will start working on the modules at its Newark factory this week with installation on site starting in January.
Offsite construction will reduce build times by around a half, allowing infrastructure and groundworks to progress at the same time as the accommodation is being manufactured.
The new building will be ready for occupation by students in September 2020.
Herefordshire Council is carrying out the project with development partners, energy and regeneration specialist ENGIE and Cityheart Partnerships.
Paul Lang, Chief Executive Officer at Caledonian Modular, said: “This is the latest multi-million pound project win for us and further strengthens our already strong presence in the student accommodation sector.
“We are looking forward to working with all the project partners and local stakeholders to deliver this exciting project.”