First an assumption. DB1 and DB2 are on the same instance. It certainly sounds like they are but it never hurts to state the obvious (particularly since I've been wrong with what I thought was obvious before.)
Given that, if the data is large, say multiple millions of rows then use an SSIS package. This has one specific feature that you will want to use. You can specify a batch size. This way your transaction size will be smaller. The downside to the SSIS package is that it adds a level of complexity to your process. It isn't a big one, but if you are working with a smaller table you don't need it.
Which leads us to the other option. If however the data is in the several hundred thousand range or smaller then use code like this.
USE D1;
GO
TRUNCATE TABLE dbo.T1;
GO
INSERT INTO D1.dbo.T1
SELECT *
FROM D2.dbo.T1;
GO
And last but not least it if it is somewhere on the boarder then I would try both and see what works best for you.
NOTE: You might also consider not using a SELECT *
on the INSERT INTO
and instead specify a field list.
That structure would look like this
INSERT INTO D1.dbo.T1 (Field1, Field2)
SELECT Field1, Field2
FROM D2.dbo.T1;