Worldwide IT spending is expected to reach $7.35 trillion in 2027, up 15% from 2026, according to the latest forecast by Gartner, Inc., a business and technology insights company.

Gartner analysts are discussing the trends that are impacting the IT market during Gartner IT Symposium/Xpo, taking place here through Thursday.

“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,” said 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 monetize 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-optimized servers, AI-optimized infrastructure as a service (IaaS) and AI software platforms continues to strengthen as organizations seek to industrialize AI deployment. At the same time, hardware markets are experiencing growing pressure from memory-related inflation (see Table 1).

Table 1. Worldwide IT Spending Forecast (Billions of U.S. 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 center 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 stabilize,” said 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 center 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,” said 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 a thousand 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.

Additional Insights Available

The Gartner quarterly IT spending forecast delivers a unique perspective on IT spending across the hardware, software, IT services and telecommunications segments. These reports help Gartner clients understand market opportunities and challenges. The most recent IT spending forecast research is available to Gartner clients in Gartner Market Databook, 3Q26.

Learn more in the complimentary Gartner webinar How Soaring Memory Prices Are Changing Technology Spending.

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Gartner IT Symposium/Xpo

Gartner IT Symposium/Xpo is the world’s most important gathering for CIOs and other IT executives. CIOs and IT executives rely on these conferences to learn how to become agents of change in their organizations and harness AI for successful digital transformation. Follow news and updates from the conference on X and LinkedIn using #GartnerSYM, and on the Gartner Newsroom.

Upcoming dates and locations for Gartner IT Symposium/Xpo include:

November 4-6, 2026 | Yokohama, Japan

November 9-12, 2026 | Barcelona, Spain

November 16-18, 2026 | Kochi, India

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