Newport City Council has agreed to help fund the expansion of the National Software Academy.
The NSA will receive a £575,000 grant jointly provided by the council and Welsh Government.
Innovation Point, a company set up to promote tech in Wales, set up the academy – part of Cardiff University – on the top floor of the Platfform building in 2015.
It will now move to three floors of the Information Station in Newport next year, with the creation of six new jobs in addition to the ten it already supports.
BusinessCloud visited the academy recently to hear how it is giving students real-world business projects with the aim of producing work-ready graduates.
Councillor Debbie Wilcox, leader of Newport City Council, said: “It is our ambition to make Newport a vibrant technology hub so it was vital that we keep the academy in the city to help us achieve that ambition.
“It attracts inward investment by producing high quality graduates and over the last year more than 120 companies have engaged with the NSA.”
Councillor Jane Mudd, the council’s cabinet member for regeneration and housing, added: “The grant will come from joint venture funding accrued by the council and Welsh Government which we have agreed will be used for economic regeneration projects that will benefit the city in a multiple of ways.
“Over the next ten years, the university plans to invest about £2m per year in Newport. This will create new jobs, increase the number of graduates and support up to 20 business projects every year.
“The NSA’s presence is crucial to our aspirations for the city.”