The present study aims at assessing dairy farmers’ preferences over different technological options related to the anaerobic digestion technology. A Choice Experiment study was conducted in Arborea, a NVZ dairy district located in Sardinia, Italy. The results show that profitability of the investment is a general driver of the choice. Heterogeneity of preferences is observed, especially as regards the options of investment on-farm or off-farm. Farmers who are especially interested in an investment on-farm are characterized by higher awareness of energy issues; while farmers with excess waste load would prefer an off-farm investment. Digestate treatment options have practically been ignored in our choice experiments: farmers do not seem aware of the opportunities offered by further processing of the digestate to improve management of the farm waste. New regulations associated with the Circular Economy EU package could increase the farmers’ perception of economic benefits associated with the adoption of anaerobic digestion technologies.