Based on panel data from 286 cities at the prefecture level and above in China spanning from 2010 to 2020 and utilizing the digital economy development objectives advanced by the “Broadband China” strategy in 2014 as a natural experiment, we employed the double-difference method to examine the impact of digital economy development on urban environmental pollution management and its underlying mechanisms. The study reveals that the “Broadband China” pilot policy significantly influences the level of environmental pollution control when compared to non-demonstration cities. This conclusion still holds after a series of robustness tests. The mechanism analysis demonstrates that the “Broadband China” pilot policy affects the level of environmental pollution control by enhancing regional innovation capacity and upgrading the industrial structure. Moreover, heterogeneity analysis indicates that the influence of the “Broadband China” pilot policy on environmental pollution control varies depending on location choice, city size, and degree of urbanization. Notably, the impact of constructing demonstration cities is particularly pronounced in the eastern region, larger cities, and areas with higher urbanization rates. This study holds significant implications for enhancing the urban ecological environment and achieving high-quality development.