Global IT spending is poised for substantial growth, projected to reach $6.2 trillion in 2026, marking an almost 11% (10.8%) increase, according to the latest analysis from Gartner. This surge isn’t just about more computers; it’s a fundamental shift driven by a ravenous appetite for artificial intelligence.
AI Fuels a Spending Spree Across the Tech Landscape
The demand for AI is reshaping IT budgets, with significant increases expected in data center equipment and software.
- Worldwide IT spending is forecast to hit $6.2 trillion in 2026.
- Spending on data center equipment is expected to jump 32% in 2026.
- Global AI spending will total $2.52 trillion in 2026, a 44% year-over-year increase.
- Organizations are spending three to four times more on AI-optimized servers than traditional servers.
- The market for AI data is projected to more than double by 2027, reaching $6.4 billion.
Gartner’s recent forecast indicates that spending on data center equipment will rise by 32% in 2026, while software expenditure is anticipated to grow by nearly 15%. Much of this investment is directly linked to hyperscalers expanding their artificial intelligence (AI) compute capacity. “Demand from hyperscale cloud providers continues to drive investment in servers optimised for AI workloads,” said John-David Lovelock, distinguished vice-president analyst at Gartner.
What’s driving this massive investment in IT? Worldwide spending on AI is forecast to total $2.52 trillion in 2026, a substantial 44% increase year over year. Lovelock noted that after two decades of relatively flat server spending, AI has unleashed an explosive wave of infrastructure investment.
The Cost of AI: A Threefold Increase in Server Spending
The financial commitment to AI is striking. Organizations are currently spending three to four times more on servers designed for AI workloads compared to traditional servers. “Three times more money is spent on servers to do AI than everything we currently do with computers,” Lovelock emphasized. Building the foundations for AI alone will fuel a 49% increase in spending on AI-optimized servers, accounting for 17% of total AI spending in 2026. This infrastructure build-out is expected to add $401 billion in spending in 2026 as technology providers bolster AI foundations.
However, the path to widespread AI adoption isn’t without its bumps. Lovelock pointed out that enterprise IT buyers are currently in Gartner’s “trough of disillusionment,” meaning they are more inclined to adopt AI-enabled products from their existing software vendors rather than embarking on entirely new, ambitious projects. “Because AI is in the trough of disillusionment throughout 2026, it will most often be sold to companies by their incumbent software provider rather than bought as part of a new moonshot project,” he said. “The improved predictability of ROI must occur before AI can truly be scaled up by the business.”
Synthetic Data Gains Traction Amidst Privacy Concerns
Despite this cautious approach, Gartner’s forecast underscores AI’s transformative potential for both IT and businesses. “Getting away from AI is going to be impossible, so the transformation is there. We’re seeing all the money being spent, we’re seeing the compute capacity required to do all of that transformation, and the money is the leading indicator of how important it is,” Lovelock stated.
The market for AI data is also experiencing rapid expansion, projected to more than double from $3.1 billion in 2026 to $6.4 billion by 2027. This growth is largely driven by the increasing use of synthetic data. Lovelock explained that synthetic data addresses data scarcity issues, mitigates privacy concerns, and reduces bias in AI training, while also enabling the creation of comprehensive training scenarios that are unattainable with real-world data alone.
Not All Tech Sectors Are Booming
While AI is driving significant growth, not all areas of IT are experiencing the same momentum. Gartner’s forecast indicates that market-demand constraints will slow overall IT spending growth to 6.1% in 2026. This slowdown is primarily attributed to rising memory prices, which are increasing average selling prices and discouraging device replacements. “This slowdown is largely due to rising memory prices, which are increasing average selling prices and discouraging device replacements,” said Lovelock. “Additionally, higher memory costs are causing shortages in the lower end of the market, where profit margins are thinner. These factors are contributing to more muted growth in device shipments.”
