Microsoft is investing €170m to further expand its data centre in Dublin.

The expansion, due for completion next Spring, will create 380 building related jobs. Once the new data centre is fully operational, an additional 20 people will join the 80 people already based there.

Microsoft said the second expansion at the plant will increase the facility's computing capacity by 169,000 square feet.

The centre was first opened in 2009 and saw its first expansion in February 2012.

Cathriona Hallahan, Microsoft Ireland's managing director, said the expansion is evidence of the continued demand for the company's cloud service such as Office 365, Skype and Xbox Live across Europe, the Middle East and Africa. 

"Not only does this highlight the growth in our cloud services business but it also highlights our continued commitment to investment and innovation in Ireland and Europe," Ms Hallahan said.

IDA Ireland's chief executive Barry O'Leary said the investment reinforces Ireland's credentials as the leading location for cloud computing. 

"Data centres have been a buoyant sector for IDA for the past number of years and Microsoft's continued investment in the sector will allow Ireland to win further investments worldwide", he added.

Ireland already has a number of large data centres here, including those owned by Google, Amazon, IBM and Yahoo. The Irish climate is seen as ideal for the development of data centres because it makes use of the cool outside air to cool the facilities all year round, resulting in energy efficiencies. 

The Microsoft plant is also 50% more efficient that traditionally built facilities and uses only 1% of the water used by some similarly sized data centres in the industry today.