The production of microalgae biomass is very promising as an alternative sustainable food, feed, high value biochemical, and 3rd generation biofuel. However, the use of microalgae biomass for the production of biofuel is still considered less feasible at this time. The main obstacle is the scale up of biomass production, high processing costs and low efficiency using the conventional biomass production system. Therefore, the use of advanced digital technology such as sensors, automation applications and the Internet of Things (IoT) was applied in this study. This research aimed to develop a Smart Algae Pond system equipped with three main functions of smart mixing, control of pH and CO2 supply, and the automatic harvesting system. The results revealed that the use of advanced digital technology and IoT could improve the productivity as well as control the production of biomass effectively and efficiently. The tested optimum value of pH was achieved at 8.5-9.5 with the CO2 concentration of 1 to 2% of the cultivation volume. Temperature was maintained from 25 to 35 °C, water velocity from 16 to 35 cm s−1, and air velocity of 8.33 cm3 s−1. Using the smart mixing system, the use of electrical energy was decreased from 0.5 to below 0.2 Kw/h. This study showed that microalgae biomass production can be measured using a water turbidity sensor.