With the development of urban economy, the urban space is further denser. Urban power grid overground construction space resources are gradually insufficient. The construction mode of urban power grid is changing from overhead line to cable line. It shows the trend of underground urban power grid. However, the underground construction of urban power grid faces some problems, such as high construction risk, high labor density, high space tightness and aging labor. The underground construction mechanization of urban power grid is helpful to solve the above problems. The digital and intelligent underground construction in urban power grid is of great significance to further promote the mechanization of underground construction in urban power grid. In this paper, it was analyzed the application status of digital twin (DT) and artificial intelligence (AI) in urban power grid and urban underground construction. The development trend and prospect of the application of DT and AI in underground construction of urban power grid were summarized. Finally, the future challenges of DT and AI applied in underground construction of urban power grid were clearly discussed from three aspects: equipment, power grid and business. It was provided reference for the development of DT and AI applied in the underground construction of urban power grid.