Canadian online sports news service Comprehensive Sports Information has set up a European operations centre in NUI Galway after talks with IDA Ireland.
The centre, to be known as Covers Media Group, will create 31 new jobs over four years, mainly for computer science, journalism and customer service graduates.
The facility will manage CSI's e-commerce operations and serve as a headquarters for European expansion. CSI operates sports news web site Covers.Com and provides content to companies such as USA Today and MSNBC.
Tanaiste Mary Harney said CSI's decision would act as a catalyst in attracting other companies in the digital media sector to Galway.
CSI founder Paul Lavers said the Galway opening was the first major step in establishing the Covers.com brand outside North America.