Harbour MSP is negotiating a second suite in the GlobalSwitch Sydney data centre for "specific high density deployments" up to 14 kilowatts a rack.
The managed services provider, one of GlobalSwitch's largest customers, was one of five companies this week appointed to a panel to supply data centre facilities and services to the Federal Government.
Commercial director Andrew Hardy said Harbour MSP was eyeing a suite of 200 to 300 square metres.
It would be used for high-density services but Hardy said the it could double to service any Government business the company secured as part of its panel seat.
It already had a suite of 1000 to 1500 square metres in the same data centre.
"We're in negotiations with GlobalSwitch for additional space for a high-density deployment," Hardy said.
"We have the required space available already [to service any Government business we win through the panel] but we may [use our appointment to] negotiate a bigger suite."
Hardy did not foresee issues with bringing Harbour MSP's space up to the security standards often required by Federal Government deployments.
"It's possible to bring any of the suites up to ASIO T4 standards," he said.
But negotiating a larger, second suite and security upgrades depended on Harbour MSP securing any Government business from the panel.
The panel did not guarantee business; it was a shortlist of suppliers to Treasury.
Hardy said the services provider was looking to build its own data centre in Melbourne to grow its business.
It spent the past "few years talking to everybody in Melbourne" to secure quality, carrier-neutral space in the city.
"We're investigating data centres in Melbourne," Hardy said.
"We're looking at maybe trying to construct one in our own right".
An announcement was expected within six weeks.
And it was due to unveil services in Singapore on November 1.