Microsoft is to locate a strategic data centre in Dublin to run its online services business throughout Europe, the Middle East and Africa.
The company, which employs 1,200 in Ireland, is to invest $500 million in the 51,000-square-metre centre at Grange Castle Business Park in Clondalkin.
The automated centre will employ some 20 staff when operational but will deliver Windows Live services and store data for the company's other online services such as MSN.
"The new facility is the latest development in Microsoft's software + services strategy and as such will provide support to Microsoft's growing online services business throughout Europe, the Middle East and Africa," the company said.
It is expected that building of the data centre will be complete in the summer of 2009.
"This is the first mega data centre deployment outside the US specifically targeted for the growth and performance of Windows Live services," said John Mangelaars, vice president, Microsoft Online Services Group, Europe, Middle East and Africa.
The climate is said to have been a key part of the decision to locate in Dublin as the lack of extreme temperatures or humidity make it ideal for data centres.
Taoiseach Bertie Ahern said the announcement was a further example of Ireland being to the forefront when it comes to the cutting edge of technology. "I also see it as a further indicator of Ireland's standing internationally as a global knowledge based economy," Mr Ahern said.
Microsoft first established in Ireland in 1985, and now has three local divisions: the European Operations Centre, the European Development Centre, and the Irish Sales, Marketing and Services Operation.
