A $20 million digital centre is planned for Wellington.

The "digital innovation hub" – inspired by Hong Kong's $2.8 billion Cyberport – will be purpose-built for digital technology and the new base for the orchestra and the New Zealand Institute for Screen Innovation.

An internship programme and finishing school will be part of the development, on the corner of Taranaki and Abel Smith streets, and is to be completed by 2011.

NZSO general manager Peter Walls said becoming part of the digital innovation hub was a real dream for the orchestra.

The orchestra has already scored films such as Peter Jackson's The Lord of the Rings and King Kong.

"It will open up so many possibilities for the orchestra with film scoring and CD recording. It is something I really hope comes to pass," he said.

Grow Wellington centres of excellence general manager Laurence Greig said the city needed to make more financial gain from its reputation as a creative centre for films and electronic games.

He hopes a "digital neighbourhood" will develop around the upper Cuba St precinct and complement the existing film technology community in Miramar.

The Wellington Company spokesman Rasbeer Gill said the new design would be unique and innovative to cater for the intended tenants.

Michael Stephens, of the Institute for Screen Innovation, said he hoped the centre would encourage international co-operation on digital projects.

"The estimated current and future value to New Zealand of the combined film and screen, games and music digital entertainment sectors is around $3 billion annually," he said.

A delegation from Hong Kong's Cyberport was in Wellington to sign a "knowledge sharing agreement" with the institute this week.

Cyberport chief executive Nick Yang said the role of such a facility was to bring innovative technology companies together to collaborate. "We have all this expertise and we are very happy to share it with Wellington."

Wellington Mayor Kerry Prendergast said the concept would provide a community for digital artists and businesses. "It's an opportunity where smart new innovative digital content companies can set up and, being in a space that is conducive to it, they can spin off ideas."