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This study examines the influencing factors of the local government’s Internet service capability construction in China. The research framework for this study was the “technology-organization-environment” (TOE) framework. A total of 277 local governments were collected from Chinese cities and used for the data analysis. The data analysis was conducted with Stata. The results of this research demonstrated that there is a significant positive correlation between information technology talents, peer pressure, leader attachment, sustainable competitiveness, data open platform, and the government’s Internet service capability. Surprisingly, there is a negative correlation between per capita budget expenditure and the government’s Internet service capability. The aforementioned conclusions hold even after the robustness test. Discussion is held regarding how these conclusions may affect the development of the government’s Internet service capability.