Adelaide could soon be home to some of the world's largest game developers once a digital hub is built in the CBD.

The State Government has announced a $2 million fund which will help build a digital games development space on Pirie Street.

It is hoped to generate 500 local jobs and encourage more global businesses in the games industry to set up shop in South Australia.

Adelaide-based game developers Mighty Kingdom will be one of the businesses to call the new Game Plus Hub home.

Founder and director Phil Mayes said game developers could come from any walk of life.

"We have had people successfully transition from the hospitality industry or other sort of adjustment industries like visual effects or defence," he said.

"In fact we find that in South Australia we have a lot of unique advantages which allow us to sort of thrive in this industry."

The digital games development industry is expected to be worth $90 billion by 2020.

Premier Jay Weather said this announcement would see the state positioned as a national leader in the rapidly growing gaming industry.

"Business confidence in SA is the highest in the nation, and our investment in this hub is set to drive investment from game developers from around the nation and the world," Mr Weatherill said.

'South Australia a great place to do business'

Employment Minister Kyam Maher said the hub would facilitate some of the world's biggest developers.

"Adelaide is fast becoming the best place for digital games makers to set up shop," Mr Maher said.

"By establishing the games hub here in the city, we're sending a clear message to this multi-billion-dollar global industry that we are open for business."

Adelaide's Mighty Kingdom employs 35 people and has just released its first product with Lego.

Mr Mayes said the announcement was a game-changer for the industry.

"We have a pretty aggressive growth strategy in mind, we find that South Australia is a great place to do business," Mr Maher said.

"There is every advantage here in the state to be able to reach these global markets and really succeed and thrive.

"With their support for Game Plus, the State Government has understood our need to grow our industry and take on even bigger projects, catapulting more South Australian businesses into the $90 billion-dollar game market."