Based on data from Chinese prefecture-level cities between 2014 and 2021, this paper finds that digital government construction significantly enhances regional investment attraction, particularly when “subsidy-based” levels are low. Mechanism analysis reveals that digital government construction promotes investment attraction by improving fiscal transparency, strengthening the rule of law, enhancing market fairness, and reducing market segmentation. Additionally, digital government drives local innovation and entrepreneurial vitality, facilitates industrial structure upgrading and rationalization, and provides a solid foundation for high-quality investment attraction.