A multimillion-euro investment may be made to update a $500m data centre in Dublin.

The software giant, Microsoft, is planning to invest a significant amount of money to expand the centre at Grange Castle in Dublin, which opened just two years ago.

According to Microsoft they hope to expand the existing building by more than one- third.

The plan is to build a 120,000 square foot data centre along side the existing 303,000 square foot facility.

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It is understood that the firm has recently approved 'phase two' of the data centre and will shortly apply for planning permission for the project.

More than 2,000 workers were involved in building the existing data centre, which is one of the biggest investments by a technology company in Ireland.

This expansion, if approved will consist of single storey building but it is pre-empted that the project will involve a further significant investment and create many jobs.

The existing data centre is located on land that Microsoft brought from South Dublin Council for over than €11m in 2007.

Microsoft set up in Ireland in 1985 and employs around 1,200 full-time staff and hundreds of contractors at four centres in Dublin. They include its European operations centre and a product development centre. The Irish operation is headed by Paul Rellis.

(LB/CD)