Five hundred new jobs are to be created with the expansion of Kildare Village Shopping Centre.
Collen Construction and will see the creation of 120 new construction jobs, while the extended Village will create an additional 380 jobs, bringing the total employees at the Village to more than 1,000.
The plans include 36 new boutiques, two restaurants and a Visitor Centre with enhanced hospitality services for guests, as well as 437 parking spaces.
Value Retail, developer and operator of Kildare Village, is investing €50m in the extension.
"We are delighted that construction on the Phase 2 expansion has commenced," said Kildare Village director Maria McGovern.
"The €50m investment and commitment by Value Retail is a testament to the existing success of the Village, increasing visitation from our global tourism markets and the arrival of new international brands that continue to refresh the retail offer and appeal of Kildare Village.
"Kildare Village is expanding to accommodate demand and to maximise its potential as the leading shopping tourism destination in Ireland, in collaboration with our many tourism partners and national tourism authorities.
"It will also allow for a captivating mix of new brands which will attract and meet the demands of high-spending international tourists."
The expansion will add an additional 5,544 square metres to Kildare Village, increasing the total size to 16,570 square metres.
In 2013, The Village attracted visits in excess of 2.3 million from visitors travelling both from Ireland and international markets including Europe, the US, China, Middle East, Australia, and Malaysia.