How to setup Proxy server for subnetting

Our network is running out of IP addresses fast can I use proxy server to set up a
subnet? We need to subnet some labs that use lots of IP addresses and someone sugested using Proxy server as a relatively cheap
solution. Has anybody tried this before? The Proxy server will only be used for subnetting a group of 50-75 computers and won’t be used for firewall purposes. Any suggestions would be appreciated.