Durham, N.C. - The Duke University Board of Trustees on Saturday approved construction of a $40 million addition to the Fuqua School of Business' Keller Center to house classrooms, meeting rooms, offices and a new library.

"The bottom line is that we are out of space," Fuqua Dean Douglas T. Breeden said. "With the projected growth of our programs in leadership, ethics, nonprofits, health sector management, entrepreneurship and innovation, it is more important than ever that we have adequate space for our students."

The 87,000-square-foot addition will extend from the east wing of the Keller Center toward Science Drive, serving as the main pedestrian entrance to Fuqua and providing to the rest of campus a new face for the school. It will contain a spacious lobby, three classrooms, two small auditoriums, rooms for students to work in teams, office space and a new library that will be nearly twice the size of the existing Ford Library.

The project is expected to begin in the fall and be completed in July 2008.

In other business, the trustees:

-- approved a $10 million renovation of the old Duke University Museum of Art building on East Campus for use by three academic departments. No decision has been announced yet as to which three departments will use the renovated building.

-- approved $30 million of renovations to Perkins Library. The renovations, covering 106,000 square feet, will improve the library's academic services, collections and aesthetics. The renovations are part of a master plan for the university's main library, which included the construction of the Bostock Library that adjoins Perkins and which opened in October 2005.

-- approved the merger of the Department of Psychology: Social and Health Sciences and the Department of Psychology and Brain Sciences. The merged department will be called the Department of Psychology and Neuroscience.

Duke Provost Peter Lange said there were strong intellectual reasons behind the move.

"There have been intellectual developments over the past decade which make it apparent that the division was inhibiting research of the type that the field was moving toward, and inhibiting psychology from playing the role it might play at the university," Lange told the Academic Council in March.

-- allocated $8 million for creating about 5,000 square feet of environmentally controlled space for a secure computer data center. The data center will be located in a to-be-determined existing building on West Campus.

-- approved extending a chilled-water pipeline from Duke Hospital to Flowers Drive. The pipeline, costing $2.8 million, will provide chilled water to existing and future buildings on Central Campus and the eastern end of West Campus. Chilled water systems provide air conditioning to buildings.