€150m is being invested in the expansion of Google's Data Centre in Dublin.
It will create 400 jobs during its construction phase and take around 16 months to complete.
The project at Grange Castle will bring capital investment by the company in Ireland to €1bn since 2003.
“I’m really delighted to announce that we’ve started to break ground on the new addition to our facility here in South County Dublin," said Terence McGoff, Engineering Director at Google.
"Our data centres are essential to our operations both in Ireland and across the larger EMEA region, allowing consumers and business to use our cloud-based tools and software far more efficiently and effectively.
Today also saw the release of a report by Copenhagen Economics into the impact of Google’s data centres on the Irish economy.
"There is no denying that this is a considerable vote of confidence in Ireland as a place to do business, said Heather Humphreys TD.
"Not only that, but given the importance of data centres in keeping web-based and cloud services running smoothly, this development is also an endorsement of our country’s technical expertise and infrastructure.