State-owned land could be used to provide Direct Provision accommodation.
It is thought the move could be cheaper than paying private operators to house asylum seekers and is being considered by the Department of Justice.
More than 3,700 people are applying for asylum in Ireland so far this year - the highest number in over a decade.
This year's total is expected to be 40% more than last year.
The Government has become more reliant on emergency accommodation options recently to deal with the demand, but in 2019, that cost the State €78m.
The Immigration Minister of State for Immigration David Stanton believes using State-owned land could be 44% cheaper.
In an interview with the Irish Times, the Minister said using State land would require planning permission and would therefore be more transparent than the current system.
He said that a complete move to State-owned accommodation may not be feasible, but he thinks increasing those types of centres could bring the cost down.
A number of protests have been held in different parts of the country against the provision of emergency accommodation in local communities.