jest.config.js

// jest.config.js
const nextJest = require('next/jest')

const createJestConfig = nextJest({
  // Provide the path to your Next.js app to load next.config.js and .env files in your test environment
  dir: './',
})

// Add any custom config to be passed to Jest
const customJestConfig = {
  // Add more setup options before each test is run
  // setupFilesAfterEnv: ['<rootDir>/jest.setup.js'],
  // if using TypeScript with a baseUrl set to the root directory then you need the below for alias' to work
  moduleDirectories: ['node_modules', '<rootDir>/'],
  testEnvironment: 'jest-environment-jsdom',
  transform: {
    '^.+\\.(js|jsx|ts|tsx)$': '<rootDir>/node_modules/babel-jest',
  },
  setupFilesAfterEnv: ['<rootDir>/src/tests/setupTests.ts'],  
  testEnvironment: 'jsdom'
}

// createJestConfig is exported this way to ensure that next/jest can load the Next.js config which is async
module.exports = createJestConfig(customJestConfig)