Construction will start in the coming months, with the facility expected to be open to the public in spring 2021.
It promises to create 130 jobs and generate up to £11m for the local economy every year. It will be able to generate 1,000 waves an hour.
Wavegarden Scotland hopes it will be a "world-class" visitor attraction which will help develop surfing talent.
The project will involve the installation of underwater technology that can create waves - from slow moving white water for beginners through to powerful barrels up to two metres high for experts.
Andy Hadden, the co-founder of Tartan Leisure Ltd, which is developing Wavegarden Scotland, said:
"We already have some the world's best waves in Scotland and the scene is growing, with some great young talent coming through the ranks.
"Wavegarden Scotland will play a key role in encouraging and developing future Scottish surfers and putting this fantastic sport in the spotlight."
The company has also committed to build a footbridge over the Union Canal to improve links with its neighbour, the Edinburgh International Climbing Arena...