Adelaide will become the first Gig City in Australia.

The South Australian government has pledged AUD$4.65 million (£2.59m) to connect the capital city’s technological workspaces with up to ultra fast internet service this year.

Speeds of up to 10 gigabits per second will be achievable if businesses invested in additional end-user technology.

The project supports the Adelaide City Council plan to become one of the world’s first Smart Cities.

Lord Mayor Martin Haese said building a stronger internet service would be a key step towards Adelaide realising its smart city ambition.

“Data is the currency of the 21st century. If we were to have a city, which had quantifiably faster data speed than the rest of the nation, without at this moment pre-empting what the technological solution would be, what would that do to attracting business to Adelaide,” he said.

“It would attract entrepreneurs and start-ups to Adelaide. It would attract large corporates to Adelaide."

READ MORE: Berlin pitches for British tech talent after Brexit

Rob Fitzpatrick, the CEO of the Australian Information Industry Association, said being a Gig City will offer businesses internet speeds of up to 100-times the Australian national average.

“The need for speed will be more and more important as we transform into a digital economy. With increased broadband comes more innovation, more jobs, and greater economic growth," he said.

“It’s not just the big end of town or research institutions that will benefit. Small businesses and start-ups drive a significant part of our economy and going digital provides them an opportunity to create new business models, improve efficiency, and get closer to the customer.

“Australia is currently lagging the rest of the world in delivery of true high-speed broadband.

"By establishing Adelaide as part of the Gig City network, the South Australian government has put a clear stake in the ground that they are serious about catching up and attracting investment, driving innovation, and generating real economic and social benefits for the state."

South Australian Treasurer Tom Koutsantonis said the high-speed internet connections would also help drive innovation.

“By giving tech start-ups and other businesses access to ultra-fast internet we can help them grow faster and attract entrepreneurs to South Australia,” Koutsantonis said.