Software giant Microsoft is planning to locate it's new European data centre in Dublin.

The $500 million construction is due to be built at Grange Castle Business Park in the city.

The new 51,000 square foot facility is expected to be completed by summer 2009

The centre will deliver Windows Live services and store data for the company's online services businesses such as MSN and Windows Live.

The announcement is the latest development in Microsoft's software and services strategy and as such will provide support to Microsoft's growing online services business throughout Europe, the Middle East and Africa (EMEA).

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Further investment will see the site fully equipped with the latest server technology.

"We are excited about our expansion in Ireland and about the fact that Ireland will now play a significant role in the delivery of online services to customers across EMEA and beyond," said Joe Macri, Managing Director at Microsoft Ireland.

He added: "The fact that Ireland has been selected as the location for this strategic infrastructure is a very strong endorsement of the success of our operations here over the past 200 years."

Microsoft has had a presence in Ireland since 1985, and currently employs around 1,200 people.

(NS/JM)