Google is to invest €150 million in a new data centre in west Dublin.
400 people will be employed during the construction phase of the project, which has already begun.
The company's new two storey facility will be situated alongside its existing data centre at Profile Park near Grange Castle in west Dublin, which was opened three years ago.
The first phase of construction should be completed later this year and when fully open it will rank among the most energy efficient data centres in the world.
The internet giant has also bought an adjacent 31 acre site, so that it can expand its facilities further in the future.
The company said the new centre would help power the full range of Google services, including Gmail, Maps and YouTube.
Several dozen permanent jobs are likely to be created once it begins operations.
Head of Google Ireland, Ronan Harris, said 400 people would be involved in the building phase and between 30 and 40 would be employed in the completed centre.
Speaking on Morning Ireland, he said he hopes the new centre will allow for further employment outside of the jobs directly related to its construction and maintenance.
However, he said the centre would support all the other services that Google delivers to its consumers and thus allow for further future employment.
"The investment in the data centre is our belief that the demand on our services is growing and around that we'll be able to build a lot more employment and a lot more jobs," he said.
"So today we've got over 2,500 full-time employees, a further 2,500 vendors who work we us and hopefully the expanded capacity of our data centres will result in the expected growth in our services and that will lead to further employment creation."
Ireland's naturally cool climate is a draw for data centre operators, because it saves them money on energy costs.
Google's new data centre is the latest example of a tech company taking advantage of this, following announcements by Apple and Facebook earlier this year.
End of 'double Irish' will not affect Google
On Morning Ireland, Mr Harris also said that the phasing out of the 'double Irish' tax strategy by 2020 will not effect how Google runs its operation here.
He said the key factors in terms of building and expanding the company are the availability of infrastructure, connectivity and talent.
Asked if "morally" Google should pay more tax, Mr Harris said the company had a legal duty to its shareholders and to operate within the law.
He said the company would like to see computer science coming onto the curriculum for the Leaving Certificate and more Irish graduates with fluent language ability.