Dell will consolidate its existing Bray operations at a new technology campus in Cherrywood in a move that will create an extra 420 jobs.
The world's biggest computer manufacturer will set up a Europe, Middle East and Africa business centre at the campus, which will be the largest customer support centre in Ireland.
Although the technology campus is not based in a regional location, the Government has agreed to offer financial support for the Dell investment. An IDA Ireland spokesman said this was in part due to the importance of Dell's operation to the Irish economy.
However, Mr Billy Timmins, a Fine Gael TD representing the Wicklow constituency, criticised the Dell decision yesterday to move its staff from its Bray site.
"This flies in the face of decentralisation and makes a mockery of the Government's stated intention of promoting employment in the regions," he said.
"It is an outrage that the Government has given Dell the green light to relocate a thousand jobs from Wicklow, which will be a huge blow to the county."
Dell plans to increase employment to 1,650 staff at the technology campus by 2007 and the site has the capacity to accommodate a further 300 employees.
The company also employs 3,000 staff at its European manufacturing headquarters in Limerick, from which it supplies computers throughout Europe, the Middle East and Africa.
The closure of the Bray facility was largely expected, following comments made by Dell chairman Mr Michael Dell on a recent trip to the Republic.
He indicated then that Dell was looking to consolidate its Bray and Cherrywood operations at one technology campus site.
The expansion of Dell's customer support operations in Ireland will be welcomed by the IDA given that Dell has warned about increasing costs here on several occasions in recent years.
The expansion is a product of Dell's rapid growth over the past few years.
Earlier this month, the firm reported a 25 per cent increase in third-quarter net earnings, helped by higher gross margins.