The funding comes as the college pushes for a merger with Limerick IT by 2021.
Athlone Insititue of Technology is spending €1.44m to create a further 76 places in the college in 2020 and 2021.
The funding is the second part of the Human Capital Initiative from the Department of Education and will be drawn down over a two year period.
President of AIT Ciarán Ó'Catháin is confident they'll also be awarded further funding in phase three of the scheme as they look to merge with Limerick IT by 2021.
He believe's the benefits of a Technological University in the midlands would be wide ranging:
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