US firm Digital Realty is to spend €150m on expanding its data centre at Profile Park in west Dublin.
The expansion will double the size of its existing 10,000 square foot facility which Digital Realty says is fully occupied.
The company handles storage and back-up for some 600 firms across a network of global data centres.
The latest investment in Ireland is supported by IDA Ireland.
It marks the latest in a series of large-scale investments by overseas firms in data centres here.
IDA's chief executive Martin Shanahan said the Digital Realty announcement is a positive sign for Ireland and proves that the country is "a great place to locate" such facilities.
The Minister for Jobs, Enterprise and Innovation said that Big Data is a sector which offers massive opportunities for Ireland.
"This €150m Digital Realty data centre project is another example of the huge possibilities that exist in this area," Richard Bruton said.
Digital Realty's sales director Gary Keogh said that the company is committed to further developing its business in Ireland.
"Digital Realty is witnessing increased demand from organisations looking to host their data in Ireland and use it as a gateway for their operations in Europe and the Middle East," Mr Keogh said.
He added that Ireland has become a "key destination" for companies looking to benefit from the latest infrastructure and knowledge economy that is rapidly developing within Ireland.