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 = {
  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

  // Handle module aliases
  moduleNameMapper: {
    '^@/components/(.*)$': '<rootDir>/components/$1',
  },
  modulePaths: ['<rootDir>'],
  testEnvironment: 'jest-environment-jsdom',
  transform: {
    '^.+\\.css$': [
      'jest-transform-css',
      {
        modules: true,
        generateScopedName: '[path]_[name]_[local]',
        // Default value is: '[path][local]-[hash:base64:10]'
      },
    ],
  },
};

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