Squiz currently operates its cloud hosting service from a Sydney data centre with a backup facility in Canberra.
The company has announced that it will start offering cloud hosting from a Melbourne data centre from November 2012.
Company officials said this will allow Squiz to provide its Victorian clients with an enterprise-grade, locally-hosted service.
"The cloud business is growing exponentially because of the cost efficiencies and ease of mind it offers an organisation," said national hosting manager Jacob Gardiner.
"When faced with making a decision about a new platform, we're seeing 85 to 90% of our clients choosing to go onto the Squiz Cloud.
Squiz has been providing cloud services since 2010 to a wide range of customers, including those in the professional services, media, education and not-for-profit sectors.
The Squiz Cloud guarantees 99.9% uptime with round the clock monitoring.
Squiz CMS and Squiz Analytics services run on Linux and PostgreSQL.