The market-oriented circulation of data element involves diverse interactions among the governments, enterprises and individuals, requiring governance aimed at creating public value to orderly coordinate interests among stakeholders. From the perspective of data space, the market-oriented circulation of data element is defined as the linkage and interaction among enterprise data space, government data space and data trading space. Based on public value management theory, this paper constructs the public value creation logic of the market-oriented circulation of data element, and differentiated contextual generation paths are followed in the technological implementation process. The market-oriented circulation of data element creates two types of public value: digital economic growth and enhancement of public welfare. In the practical promotion process, the market-oriented circulation of data element faces conflicts between departmental interests, commercial interests, individual rights and public value. Meanwhile, the particularity of data element intensifies the conflict of multiple values, which will lead to the failure of public value. Effectively addressing public value failures in the market-oriented circulation of data element requires the establishment of collaborative governance models for data communities to promote the reshaping of value relationships.