Microsoft plans 'mega data centre' in Ireland...

Microsoft said that it will spend $500m (£239m) on building a new European data-processing centre in Ireland.

Microsoft said in a statement that the planned Dublin centre will house tens of thousands of servers providing information and web-based applications to internet users.

Construction will begin later this month, with the centre expected to be completed by 2009.

"This is the first 'mega data centre' deployment outside the US specifically targeted for the growth and performance of Windows Live services," said John Mangelaars, vice president of Microsoft's EMEA Online Services Group.

The software giant said an additional "substantial" investment is planned to help fund the centre's server technology.

The 51,000 square-metre facility will deliver Windows Live services and store data for the company's online-services businesses, such as MSN and Windows Live.