A new data centre, called DB7x, will be close to two other facilities owned there by the company.
Retail capacity at the data centre is scheduled to be available to clients from early 2028.
Peter Lantry, the managing director of Equinix’s operations in Ireland, said the new facility will support the Government’s recently published digital and AI strategy.
Equinix operates a number of data centres in Dublin, which provide digital capacity for a range of clients in IT, finance and content.
Last month, the company said that it will spend at least $350m over the next five years to support the development of an advanced manufacturing facility in Dundalk, Co Louth, that will make specialised equipment for the data centre sector.
Equinix said it could extend the commitment to a 10-year deal, in which up to $700m would be invested in the facility, which will extend to over 150,000 sq ft.
The company has teamed up with Hanley Energy, which was recently acquired by the American multinational manufacturing firm Jabil, to build the facility.
Last year, Equinix paid €59m to buy BT Ireland’s two Irish data centres, both of which are in Dublin.
Equinix generated revenue of $9.2bn last year on a reported basis, a 5pc annual increase. Its operating income was up 39pc to $1.8bn as it benefited from a strong underlying performance and lower impairment charges.
The company operates about 280 data centres around the world and has almost 11,000 customers.
In December, the Commission for Regulation of Utilities (CRU) published its large energy user policy designed to assist with the development of data centres. There had been an effective four-year moratorium on the construction of any new such facilities.
The CRU said that data centres must meet at least 80pc of their annual electricity needs through new renewable-energy projects based in the Republic of Ireland.
In January, the Government launched its large energy user action plan.
It said that it will enable Ireland to “attract the next generation of investment in energy intensive sectors” over the coming decades. Energy intensive sectors include semiconductors, pharmaceuticals, precision engineering and data centres.
The government said a “plan-led” approach to energy intensive industrial developments includes identifying green energy parks that will co-locate the most energy intensive industries with indigenous renewable energy resources, including offshore wind.
It also ensures consistency of infrastructure planning with other strategic government priorities, such as provision of housing, transport and water.
EirGrid, the semi-state company that manages and operates Ireland’s electricity grid, has predicted that data centres will be using 32pc of all the electricity consumed in the country by 2030. That compares with about 22pc at the moment.
source