Municipal solid waste (MSW) poses a mounting environmental crisis across developing regions, yet its organic fraction represents a substantial untapped resource for biogas production, a source of clean energy. This study evaluates the potential for enhanced biogas yield from MSW using anaerobic digestion under mesophilic conditions through the strategic application of digital technologies. The organic fraction of MSW in a typical mid-sized urban centre can yield between 98 to 145 Nm³ of biogas per tonne of feedstock under optimized conditions, with digital monitoring systems potentially increasing methane yields by 18–27% through real-time pH and temperature regulation. Investigated operational, institutional and economic barriers that have historically constrained MSW-based biogas projects, including feedstock variability, collection inefficiencies, and inadequate process control. Through stakeholder interviews with waste managers and plant operators, we identify that digital solutions such as IoT sensors for substrate characterization, machine learning for predictive maintenance and blockchain-enabled traceability for carbon credit verification are pivotal in addressing these challenges. The findings reveal that while the technical potential is significant, successful implementation hinges on upfront investment in digital infrastructure, workforce training and supportive policy frameworks. Digitally-enhanced MSW-to-biogas systems offer a realistic, scalable pathway for sustainable waste management, emission reduction, and decentralized energy generation, provided that financial and institutional barriers are systematically addressed.