The council is set to upgrade its Engine Room business centre on Hood Road in Barry.
The Vale of Glamorgan Council has put forward extensive plans to improve the centre, including redesigning and reconfiguring both the interior and exterior.
The changes will see the main entrance redesigned, and outside communal spaces enhanced with cycle parking and seating.
The car park will be extended and resurfaced, with new signage and landscaping work planned.
The interior is also set to be decorated and reconfigured.
The council hopes to boost the centre's appeal and meet the needs of the growing business community.
This project will create 13 new business spaces, building on recent carbon reduction initiatives.
Councillor Bronwen Brooks, Vale of Glamorgan Council cabinet member for sustainable places, said: "The Engine Room is a bright, modern, welcoming, and flexible space for businesses to work and collaborate.
"This transformation project can help create a state-of-the-art business centre for the Vale and help attract the inward investment necessary for economic growth.
"After recent environmentally friendly innovations, this phase will make it even greener.
"That aligns with the council’s Project Zero commitment to become carbon neutral by 2030."
The work is expected to take 20 weeks to complete, with the new improved business units available to let from April.
The project will be funded by more than £1 million from the UK Government Shared Prosperity Fund, with the work carried out by contractors Kingfisher Developments.
The Engine Room, located on Barry Waterfront's Innovation Quarter (IQ), was previously an IT skills centre.
Since the council took over the operation of the building and changed its use in 2015, interest in the Engine Room has grown significantly.
This work will help meet that demand.
The IQ, an area of former dockland, has undergone extensive regeneration as part of a joint venture between the council and Welsh Government.
This has included the award-winning conversion of the Pumphouse building into retail space, a Premier Inn hotel, a Brewers Fayre restaurant, West Quay Medical Centre, the Business Services Centre, the Goods Shed development, and Ysgol St Baruc primary school.
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