Data center spending to surge 62.5% as global IT outlay tops $6.37 trillion in 2026: Gartner

Global IT spending is projected to reach $6.37 trillion in 2026, a 14.2% increase over 2025, with investment in AI infrastructure driving unprecedented growth in data center systems and cloud services, according to Gartner.

The research firm forecasts data center systems to be the fastest-growing segment, with spending expected to jump 62.5% year over year to $822 billion as enterprises and hyperscale cloud providers expand infrastructure to support artificial intelligence workloads. Infrastructure as a Service (IaaS) is expected to be the second-fastest growing segment, rising 29.3% to $287 billion.

"Data center systems and Infrastructure as a Service (IaaS) are the top growth segments, reflecting accelerating investment in AI infrastructure, cloud platforms and intelligent applications," said John-David Lovelock, Distinguished VP Analyst at Gartner.

He described the build-out of AI computing capacity as "the largest infrastructure project ever attempted by humanity," driven by surging demand for high-performance computing and next-generation data centers.

Software spending is forecast to grow 15.5% to $1.47 trillion, while spending on devices is expected to rise 9.8% to $868 billion. IT services spending is projected to increase 5.3% to $1.57 trillion, while communications services will grow 4.4% to $1.35 trillion.

Gartner said it has revised its overall IT spending outlook upward from earlier projections, citing stronger-than-expected enterprise investment in AI infrastructure, AI-enabled cloud platforms and AI-ready software. The firm noted that incremental technology spending is increasingly concentrated in AI-related segments, while traditional IT categories continue to witness comparatively modest growth.

"IT spending growth is being fueled by rising investments in AI infrastructure and software," Lovelock said. "Organizations are spending more on AI-optimized servers, cloud services and AI-ready software as they expand their AI efforts, while hardware markets continue to adjust to semiconductor and memory supply constraints."

Despite the robust growth outlook, Gartner cautioned that technology budgets remain under pressure from inflation, supply shortages, rising hardware and memory costs, and the need to fund AI initiatives. As a result, spending is becoming increasingly selective, with enterprises prioritising investments that directly support AI deployment and business transformation.

The latest forecast underscores how AI has become the dominant force shaping enterprise technology spending. As organisations scale generative AI applications and modernise their digital infrastructure, investment is increasingly flowing towards high-performance data centres, cloud platforms and AI software, leaving traditional technology segments to compete for a smaller share of enterprise IT budgets.