Cardiff Business School's new building will, once completed, offer modern facilities such as a 60-seat trading floor, an executive education suite, lecture theatres and flexible study spaces.
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It will also provide bespoke facilities to host conferences and events for business people and policy makers.
The sod cutting was also attended by Roger Lewis of the WRU and Alan Edmunds of Media Wales, both of whom are members of the School’s International Advisory Board.
The First Minister, Carwyn Jones AM said: "This represents the first step towards another major development in the history of Cardiff University and Cardiff Business School.
"We want to see a strong Higher Education Sector here in Wales. One which attracts and retains the highest quality students, built around the needs and expectations of learners and offering the best HE experience and outcomes.
"The plans for this new Business School fully support that vision."
(CD)
