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"The point sticks in your head: physics rules. Virtue does not triumph unless the physics allows it."
- Larry Niven

Cyberspace  
  A computer technology that allowed people to see a computer network as an internal experience.  

As far as I know, this is the first instance.

I knew every chip in Bobby's simulator by heart; it looked like your workaday Ono-Sendai VII, the "Cyberspace Seven," but I'd rebuilt it so many times that you'd have had a hard time finding a square millimeter of factory circuitry in all that silicon.
From Burning Chrome, by William Gibson.
Published by Not known in 1982
Additional resources -

Here is a somewhat more detailed description from Neuromancer, which Gibson published two years later.

Case was twenty-four. At twenty-two, he'd been a cowboy, a rustler, one of the best in the Sprawl. He'd been trained by the best, by McCoy Pauley and Bobby Quine, legends in the biz. He'd operated on an almost permanent adrenaline high, a byproduct of youth and proficiency, jacked into a customized cyberspace deck that projected his disembodied consciousness into the consensual hallucination known as the matrix.

The matrix has its roots in primitive arcade games...Cyberspace. A consensual hallucination experienced daily by billions of legitimate operators, in every nation, by children being taught mathematical concepts... A graphic representation of data abstracted from banks of every computer in the human system. Unthinkable complexity. Lines of light ranged in the nonspace of the mind, clusters and constellations of data. Like city lights, receding into the distance...

Although the word "cyberspace" is often used to describe the World Wide Web and/or the Internet, neither of these yet measure up to what Gibson was talking about.

Compare this to the Saga simulation from Arthur C. Clarke's 1956 novel The City and the Stars, the virtual matrix from The Judas Mandala (1982) by Damien Broderick and the Saga simulation from Arthur C. Clarke's 1956 novel The City and the Stars. Note also the DreamTime Scleral Contact Lenses From The California Voodoo Game (1992) by Larry Niven (w/S. Barnes).

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Additional resources:
  More Ideas and Technology from Burning Chrome
  More Ideas and Technology by William Gibson
  Tech news articles related to Burning Chrome
  Tech news articles related to works by William Gibson

Cyberspace-related news articles:
  - Data Mining In Three Dimensions

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