The Dallas Morning News reports the building was approved last month by the University of Texas Board of Regents.
The project will expand an ongoing partnership in neuroscience studies between UTD and researchers at UT Southwestern Medical Center.
The regents approved spending $72.25 million from the state's Permanent University Fund Bond. The rest will be paid for by the university.
UTD provost Hobson Wildenthal says the university will use $4 million in money saved from earlier projects, plus $8.75 million that will be borrowed.
The building should be ready for use by fall 2016.