The money from the Atlantic Canada Opportunities Agency will be used to upgrade the Queens Place Emera Centre.
The facility will get a new ice-covering system, upgrades to pipes, drains, safety systems, seating and stage lights.
Gerald Keddy, the local Conservative MP, said an additional $40,000 will spent to help Music Nova Scotia develop export opportunities.
The money will be used to give musicians access to music buyers from Germany, Austria and Switzerland.
More than 40 international buyers are expected to attend the event.
Meanwhile, the Nova Scotia government said Tuesday in plans to spend $38,000 on Nova Scotia Music Week.
The money will be used to draw the attention of music buyers from Germany, Britain, the United States and Canada.
Nova Scotia Music Week will be held at Queens Place from Nov. 8 to Nov. 11.