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Six One News: Bethan Kilfoil reports that the centre is seen as a vote of confidence in Ireland's economic future
The centre will provide services for businesses, the public sector and customers.
Speaking at the official opening of the centre at Grange Castle Business Park in Clondalkin, Taoiseach Brian Cowen said it demonstrated Microsoft's continuing commitment to Ireland.
He said the facility would contribute to the development of Ireland's future smart economy.
President of Microsoft International Jean-Philippe Courtois said the opening of the data centre was a milestone in the company's ongoing investment in Europe.
The $500m centre will employ 50 people and is Microsoft's first in Europe.
