The Hospice of the Valleys will be built on the former steelworks site in Ebbw Vale to provide palliative care for patients across Blaenau Gwent.
At present, the 550 patients cared for by the project are treated in their own homes by 20 staff working out of a six-room office in Tredegar.
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Fundraising for the new hospice began after the number of people under its care leapt by 88% in 14 years.
Chief Executive Andy Richards said: "This new facility will provide high-quality care and support to patients throughout Blaenau Gwent in a tranquil and peaceful setting.
"It will also be the operational headquarters of the hospice and as such it must be fit for purpose for both patients and staff alike."
The purpose-built centre will include seven treatment rooms, a childcare centre and offices for the hospice staff.
The plan was developed by the Centre for Engineering Research and Environmental Applications (CEREA) at the University of Glamorgan at the request of the hospice.
The low-energy, low-carbon building will incorporate renewable energy systems, rainwater harvesting and other features.
(BMcC/KMcA)
