The rapid innovation of information and communication technology and its sharp falling prices have brought about the expansion of the Internet, integrating the world as one space under converged space and time. This rapid expansion of the Internet and its application in the economy have spurred the emergence of the digital economy. The Internet has influenced strongly on the changes of not only economic activities but also political, social and cultural activities. In this context, a rapidly increasing Internet expansion renders the rhetoric about the death of distance and about the meaningless of geographical place. However, the development and expansion of Internet induces a growing digital divide among nations and also a spatial inequality in a nation as the supply of the Internet has concentrated towards demand-affluent large cities. A large gap of digital access has been occurred between high income and low income countries according to a measurement of the international digital access index. In a national level, the Internet backbone has been built around large cities which favor a large amount of the Internet demand, and the affordable accessibility of these cities for the Internet services has influenced strongly on the agglomeration of Internet related industries, further inducing the construction and investment of the Internet backbone into large cities as cumulative causation effects. As a result, the expansion of the Internet affects immensely on the changes of spatial structure in a nation resulting in the new spatial phenomena such as centralization, concentration and splintering in the digitalized space-economy.