A $400-million science and technology precinct for Hobart's CBD is now a step closer to becoming a reality.

The University of Tasmania wants to turn a city car park into a STEM (science, technology, engineering and mathematics) hub and Australia's peak infrastructure advisory body has given its stamp of approval.

Infrastructure Australia (IA) chairman Mark Birrell said the project was nationally significant.

"This is captivating in what it can do for Tasmania, but my point is it is captivating for what it can do for Australia," he said.

University of Tasmania vice-chancellor Peter Rathjen said the $400-million project could transform the state's capabilities in science, technology, engineering and maths.

"It makes such a statement about the future of Tasmania itself," he said.

"We would be putting science and knowledge physically at the heart of our community."

The precinct would provide teaching and research facilities to 3,000 students and 700 staff.

IA has added the project to the national infrastructure priority list — the first time a university proposal has been backed with such high priority.

But IA approval does not mean the precinct is guaranteed.

"What this means is that the university's got over a very high hurdle, of proving strategic merit and national significance," Mr Birrell said.

"The business case is a good one and I hope that it can get the funding together now as a result of this approval."

The exact funding breakdown of the project will depend on ongoing negotiations between the university and both state and federal governments, but the ABC understands the Commonwealth will be asked to contribute roughly $250 million.

Businesses excited over student influx

The IA approval of the STEM project comes as close to 300 students prepare to move into the university's newly built student accommodation this weekend.

Local business owners said they were excited by the influx.

"It's giving the 'midtown' precinct a new vibrancy that we've been working towards for some time," store owner Katina Challen said.

"We know that beyond the students themselves, their visiting friends and relatives will be a great marketing opportunity for us."

Stuart Addison owns a nearby bar and bistro, he said it was unclear exactly what the population boost would mean.

"We don't know [whether they] want what we're offering, or whether we maybe adapt our offering a bit to be a bit more student friendly," he said.

"At the end of the day, the energy it's going to bring to this part of town is fantastic. I'm really excited about that."