<p>Enhancing energy efficiency is a crucial factor in balancing resource utilization and fostering urban green development. The rise of digital economy serves as a key catalyst for enhancing energy performance. Nevertheless, limited research has integrated the digital economy within a comprehensive framework to examine the effect of advancements in green technology on energy efficiency. We calculate the overall energy efficiency factor of 278 urban areas in China, clarifying how green technology advancements influence energy performance while also exploring potential mechanisms. Empirical highlight the crucial role of technological advancements in boosting energy utilization efficiency. Additionally, green utility patents contribute more to energy efficiency than green invention patents. Digital economy and industrial structure can significantly mediate the relationship between the two. Notably, the advantages of the digital economy are observed primarily in non-resource-based cities. Leveraging the digital economy’s strengths in coordinating green technology innovation with energy efficiency could facilitate progress toward improved energy efficiency and carbon neutrality. This research offers new perspectives on advancing energy efficiency and achieving carbon neutrality within the framework of digital economic development.</p>