From the perspective of data elements' nature and role, two effects, namely cyclic cumulative effect and correlation osmotic penetration effect, has been extracted that empower green development through digital economy. On the basis of theoretical analysis, after comprehensively measuring the levels of digital economy and green development using data from prefecture-level cities, provincial input-output tables, and micro-enterprise data from 2011 to 2017, it verifies that the cyclic cumulative effect of the digital economy achieves urban green development by optimizing the production input structure. In contrast, the correlation osmotic penetration effect achieves urban green development by diffusing the use of digital products within and between industries. And in areas with better technological level and industrial support, the digital economy has a stronger impact on promoting green development. The study enriches the theoretical system of digital economy and holds significant implications for how to leverage the "digital economy" to achieve the "win-win" of industrial upgrading and green development in the context of the new development pattern.