Development of the copper-free, ultra-fast network, which will span from Bannockburn in the south to the Stirling Agricultural Centre in the north, is expected to take 14 months and will initially connect 33 council sites including schools, libraries and offices.
It will also provide a future-proof platform for further digital developments, such as connecting mobile masts and delivering safer city infrastructure such as smart CCTV and street-lighting.
CityFibre said it hoped it would eventually be able to extend the service, which it is providing in partnership with MLL Telecoms, to the majority of the 3000 businesses based in the area.
James McClafferty, CityFibre’s head of regional development in Scotland, said: “By providing unlimited bandwidth and true fibre connectivity, CityFibre’s privately funded investment in Stirling will benefit all areas of the community.
“As the first organisation to be connected, Stirling Council will, for example, explore the e-learning potential offered by gigabit connectivity in schools and libraries, whilst improving the use of digital and web-based tools and services for both staff and customers.
“As the project progresses we expect Stirling to benefit economically as the city becomes more competitive in terms of attracting new businesses, supporting growth among existing firms and creating jobs.
“We are already seeing this trend emerge in our gigabit city projects across the UK and in others throughout the world.”
The firm is currently carrying out similar projects in Glasgow, Edinburgh and Aberdeen.
Stirling Council leader Johanna Boyd said: “This leap forward for our digital connectivity will make our existing businesses more competitive, encourage new businesses to the city centre, and enable us to deliver education and skills programmes, which not only ensure our students are the most digitally skilled in Scotland, but also provide people of all circumstances and skill levels with opportunities for employment.”