The global appetite for technology shows no signs of abating, even as the industry navigates shifting economic pressures. Worldwide IT spending is projected to hit $6.15 trillion in 2026, up 11% from 2025, according to the latest forecast from Gartner.
Though some analysts have cautioned about a potential AI bubble, Gartner’s data suggests that the infrastructure supporting artificial intelligence (AI) remains the primary engine of growth.
Spending on AI-related hardware and software continues to surge, largely fueled by hyperscale cloud providers like Microsoft Corp., Google, and Amazon.com Inc. that are aggressively investing in servers optimized for complex AI workloads.
The most explosive growth is happening deep within the world’s data centers. Gartner projects that server spending will accelerate by a staggering 37% in 2026. This push is expected to drive total data center investment past $650 billion, up from nearly $500 billion a year earlier.
“AI infrastructure growth remains rapid despite concerns about an AI bubble,” said John-David Lovelock, distinguished vice president analyst at Gartner. He noted demand for specialized servers is reshaping how the industry allocates capital.
The software sector also remains a heavyweight with total spending expected to exceed $1.4 trillion. Although Gartner slightly adjusted its growth forecast for software downward to 14.7%, the niche for generative AI (GenAI) models remains a massive outlier. Spending on GenAI models is expected to skyrocket by 81% in 2026, capturing an increasingly larger slice of the total software market.
“We are definitely in a ‘strap in and hold your ass’ moment for growth,” Futurum Group CEO Daniel Newman said. “Not seeing a single indicator that AI is slowing but clearly we have entered a risk-off period.”
While infrastructure and software soar, the consumer and enterprise device market — including mobile phones, PCs, and tablets — is hitting a plateau. Spending on devices is forecast to reach $836 billion, but growth will slow to 6%.
Lovelock attributed this deceleration to two main factors: rising memory prices that greatly contributed to higher retail prices, making consumers hesitant to replace aging tech; and supply shortages. Thinner profit margins on budget-friendly devices have led to shortages at the lower end of the market, further muting shipment growth.
Despite hurdles in the hardware retail space, the broader takeaway is clear: The enterprise arms race for AI dominance is keeping the global IT economy in a high-growth phase.
Goldman Sachs recently forecast that capital expenditure for AI hyperscalers will exceed $500 billion in 2026, driven by massive capex budgets from Microsoft, Alphabet, Amazon, and Meta Platforms Inc.
“The DevOps and application development market is undergoing transformative growth, driven by the convergence of cloud-native architectures, advanced AI capabilities, including generative AI, and automation,” said Mitch Ashley, vice president and practice lead, Software Lifestyle Cycling, at The Futurum Group. “Organizations are adopting integrated platforms, end-to-end security, and developer AI tools, reshaping how software is created, tested, and delivered. With the market projected to grow to nearly $269 billion by 2028, in just a few years, we will see AI and automation become not just accelerators of innovation but essential enablers of scale, security, and competitiveness for every enterprise.”
