The new investment will begin construction in what is known as the Ellipse, the round room under the fountain.
It is a gigantic venue that has been empty for several years, and on Wednesday the city of Stockholm presented the plans.
The operation is to be run by The Node, an organization that came together precisely to create the music house, according to Culture Citizen Councilor Jonas Naddebo (C).
Meeting place for music
Chairman of The Node, Alfons Karabuda, describes it as a meeting place to create music and to meet others who deal with music or other culture.
There will also be workshops, but also training in how to, for example, counteract mental illness in the music industry.
It is unclear when it will be finished, but the cultural council hopes to at least be able to open a few rehearsal rooms already next year.
See more in the video.