Digital transformation is reshaping higher education institutions worldwide by integrating advanced technologies into teaching, research, and administration. Universities are evolving from traditional knowledge-delivery centres into dynamic hubs of innovation, collaboration, and digital learning (Anderson Terry, 2011). This study explores digital transformation’s contributions to the development of sustainable knowledge and innovation centres in HEIs. The research examines the role of digital tools viz. artificial intelligence, cloud computing, learning management systems, and virtual collaboration platforms in enhancing academic delivery and research productivity. A descriptive research methodology has been adopted using secondary data. The findings indicate that digital transformation enhances accessibility, promotes interdisciplinary research, supports innovation (Castells, 2010) ecosystems, and improves the efficiency of educational institutions. However, challenges such as digital infrastructure gaps, lack of training, and resistance to change remain significant barriers. The study concludes that strategic digital adoption, supportive policy frameworks, and investment in digital skills are essential for universities to function as sustainable knowledge and innovation centres in the modern global knowledge economy.