Worldwide IT spending is expected to reach $7,35-trillion in 2027, up 15% from 2026, according to the latest forecast by Gartner.
“Collectively, the market forces are reinforcing spend around AI infrastructure, AI-enabled cloud platforms, and advanced software ecosystems as these are the most attractive opportunities in global IT spending,” says John-David Lovelock, distinguished VP analyst at Gartner. “Increasingly, the growth of the digital economy is being determined not only by software adoption, but also by the ability to finance, build, and monetise AI infrastructure at an unprecedented scale.”
The next $1-trillion dollars in IT spending growth is being shaped by two interconnected AI domains: AI infrastructure and AI software. Spending on AI-optimised servers, AI-optimised infrastructure as a service (IaaS), and AI software platforms continues to strengthen as organisations seek to industrialise AI deployment. At the same time, hardware markets are experiencing growing pressure from memory-related inflation (see Table 1).
Worldwide IT Spending Forecast (Billions of US Dollars)
|
|
2026 Spending |
2026 Growth (%) |
2027 Spending |
2027 Growth (%) |
| Data Center Systems |
879 |
73.8 |
1,366 |
55.5 |
| Devices | 847 | 7.2 | 916 | 8.1 |
| Software | 1,464 | 15.2 | 1,679 | 14.6 |
| Services | 1,557 | 4.4 | 1,633 | 4.9 |
| Infrastructure as a Service (IaaS) |
292 |
31.3 |
367 |
25.7 |
| Communications Services |
1,352 |
4.1 |
1,391 |
2.9 |
| Overall IT | 6,391 | 14.5 | 7,352 | 15.0 |
Source: Gartner (October 2026)
Over the past 12 months, demand from data centre systems has driven memory prices to more than double, with cost increases cascading throughout storage, server, networking, PC, and device supply chains.
“This ‘memflation’ effect is expected to persist through 2027 before hardware pricing begins to stabilise,” says Lovelock. “While higher average selling prices continue to support spending growth, the resulting pressure on affordability is expected to suppress end user demand throughout the forecast horizon.”
Longer-term, the forecast reflects a further upward revision in growth expectations for data centre systems, reinforcing the view that AI infrastructure has become the foundational layer of the AI economy. Unlike previous technology cycles where infrastructure supported software growth, infrastructure itself is increasingly being treated as a strategic investment asset.
“Backed by hyperscaler capital expenditure, private capital funding, financing initiatives and in some cases the technology suppliers themselves, AI infrastructure is emerging as both a technology platform and an investable asset class,” says Lovelock. “As a result, spending on AI infrastructure, AI cloud services, AI platforms, and AI-enabled software is expected to reach explosive highs throughout the forecast period, underpinning sustained growth in the broader IT market.”
Gartner’s IT spending forecast methodology relies heavily on rigorous analysis of the sales by over 1 000 vendors across the entire range of IT products and services. Gartner uses primary research techniques, complemented by secondary research sources, to build a comprehensive database of market size data on which to base its forecast.