Wagga was one of the seven original locations included in the March 2020 launch of the Gig State project "to seek the most effective and innovative ways to upgrade the critical digital links" for regional communities and agribusinesses.

A Department of Regional NSW spokesperson said Wagga had "received significant federal and private telecommunications investment that fulfilled Gig State's original objectives" since 2020.

"To avoid duplication and overbuilding of the network in areas already covered by nbn and other private market investment, Gig State's investment has been redirected to prioritise underserved rural and regional communities," the spokesperson said.

The spokesperson said Wagga's internet projects included the federal Business Fibre Zone for 3400 businesses, a fibre network for the Bomen industrial park and Wagga council's approval of a $2.7 million data centre at Turvey Park.

Wagga Labor councillor Dan Hayes questioned the department's reasons as the three other internet projects were all active last year while Wagga was still listed as part of the Gig State.

"Up to November we were told it had gone out to tender and projects were coming, and they have been called out this week and have had to admit that Wagga has been dropped," Cr Hayes said.

"It's a $100 million opportunity lost to Wagga because they think our internet is fine.

"They have got to be kidding themselves if they think our internet is set up not just for now but into the future."

Cr Hayes said he suspected Wagga had been dropped from the Gig State so it could be focused on marginal seats in the lead up to next year's state election.

"This project is being used as a rort for votes rather than improving the lives of people out this way," he said.

Wagga independent MP Joe McGirr praised the Gig State in 2020 as a complement to the special activation precinct's aim to create 6000 new jobs at Bomen.

Dr McGirr said yesterday that internet availability was critical for business, health and education and he had sought clarification from NSW Deputy Premier Paul Toole about what impacts the Gig State changes would have on Wagga.

"However, I have been keeping up to date on this issue and the internet provision and speed has significantly improved in the past two years around Wagga. This has been in part indirectly because of this program," Dr McGirr said.

"So, it could make sense to now focus on regions that do not have as good access to the internet."

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