The $500 million (£380 million) investment will the company’s determination to remain active outside the United States in the face of a potential ban by President Trump.
Bytedance, the Chinese owner of the popular video-sharing app, said that TikTok would pick Ireland to build its third data centre the Times has revealed.
This would be alongside its two existing bases in America and Singapore.
TikTok said the move would mean that information on British and European users would be hosted on Irish servers.
This is hoped to give app users confidence “that their data is secure and that we are protecting their privacy”.
The move highlights TikTok’s efforts to promote its protection of data amid US criticism.
The building project is yet to be announced, and promised hundreds of new jobs.
It is hoped the centre will be built within two years.
The announcement came amid speculation that TikTok will open a new international headquarters in London.
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Bytedance has always strongly denied it would accept such a request.
China’s media recently lashed out at Washington, accusing the US of “cowardice” over recent actions towards the app.
US President Donald Trump has given Microsoft and ByteDance – TokTok’s owner – 45 days from last Sunday to come to an agreement.
Mr Trump’s willingness to allow a US firm to purchase TikTok comes just two days after he said he was planning to ban the app outright.
On Monday, Chinese state news outlet Global Times published an article which claimed a ban of TikTok “reflects Washington’s cowardice”.
Global Times is part of the People’s Daily newspaper group – reported to be published by the Communist Party of China.
The article stated TikTok had been “suppressed” by the US government just as its global influence was growing.
The Global Times said: “The US’ decoupling from China starts with killing China’s competitive companies. Washington ignores rules and is unreasonable.”
It also compared the US’ actions towards TikTok to its treatment of Chinese telecommunications firm Huawei.
It said: “The two companies are pioneers worldwide. They have brought a sense of crisis to US elites, which shows that China’s top companies have the ability to move to the forefront of the world in technology.
“It reflects the power of China as an emerging market. As long as such power continues to expand, these top Chinese companies can eventually break through US suppression.”
As well as the 45-day time constraint, Mr Trump said the deal could only go ahead if the US would be making a “substantial” amount of money out of it.