The new suite will be the third theatre at the privately-run Spire Elland Hospital, near Halifax, and is due to open next summer.
Orthopaedic consultant Asim Siddiqui said it would incorporate new features to ensure infection risk was minimised for patients and would allow more patients to be operated on sooner.
It is the latest stage of an upgrade to facilities at the hospital following from previous investment in improved eye care services.
Hospital director Chris Harrison said: “Our investment in the hospital shows our commitment to our patients and the local area. It is imperative to us that our consultants have the best facilities to practice from so they can give patients the best possible treatment.”