Abstract: Abstract: the digital economy with data as the key factor of production is changing the mode of production organization and becoming the key momentum of high-quality development, but there is a lack of basic theoretical research on how the digital economy is formed and operated. This paper puts forward the industrial digitization path of the unique operation mechanism of the data characteristic "data element" digital economy, regards the data element as the core process of the industry digitization transformation, and expounds the triple constraints faced by the data element transformation. and around the data reuse to carry out data cycle iterative data element process analysis, in this process, the data mechanism plays the role of resource allocation and regulating the operation of digital economy. This paper combines the research of data and digital economy, understands the internal operation mechanism of digital economy from the point of view of the flow of data elements, and provides theoretical inspiration for deepening the development of digital economy and accelerating the digital transformation of traditional industries.