Donegal County Council has committed an additional €500,000 in funding for the Inishowen Digital Innovation Hub.
The Council says the increase in funding is a result of Covid-19, Brexit and an increase in construction costs.
Enterprise Ireland previously announced a €1.1m grant for the Inishowen Digital Innovation Hub with Donegal County Council committing €1.4m in co-funding.
Now, an additional €500,000 has been provided by the Council to allow for cost increases, delays in receiving income from occupants, due to Covid-19 delays and a contingency amount of €150,000.
The construction tender price is over €226,000 higher than expected.
It's been confirmed that construction work could start within the next two months, subject to the easing of Covid-19 restrictions.