An Overview of Digital Transformation and Environmental Sustainability: Threats, Opportunities and Solutions

Digital transformation, powered by technologies like AI, IoT, and big data, is reshaping industries and societies at an unprecedented pace. While these innovations promise smarter energy management, precision agriculture, and efficient resource utilization, they also introduce serious environmental challenges. This paper examines the dual impact of digital technologies, highlighting key threats such as rising energy consumption, growing e-waste, and increased extraction of raw materials. For instance, global e-waste reached 62 million metric tons in 2022, and data centers alone accounted for nearly 1% of the world's electricity demand in 2019. The review synthesizes findings from studies on topics like the energy use of blockchain technologies and the environmental costs of raw material extraction in the smartphone industry. Moreover, it identifies critical research gaps, particularly in understanding the environmental impact of digital usage at individual and household levels. Practical strategies such as integrating circular economy principles, promoting renewable energy, and green computing are proposed to balance technological advancement with sustainability goals. This study highlights the need for a holistic approach, suggesting future research directions to minimize digital transformation’s environmental footprint while maximizing its sustainability benefits.