Global IT spending is projected to reach $6.37 trillion in 2026, marking a 14.2% increase from 2025. The updated outlook reflects strong demand for artificial intelligence infrastructure.
The figure was revised upward from an earlier estimate of $6.31 trillion. Companies continue to invest heavily in AI hardware and software, even as doubts grow about the technology’s short-term benefits.
AI drives spending despite investor caution
John-David Lovelock, a distinguished VP analyst at Gartner, stated that AI-related spending is increasing across industries. He noted that AI infrastructure growth remains rapid despite concerns about an overvalued market. “Demand from hyperscale cloud providers keeps pushing investment in servers built for AI workloads,” Lovelock said.
Data center systems will see the fastest growth this year, driven by AI workloads and high-performance computing. Both hyperscalers and enterprises are expanding next-generation data center capacity to meet rising needs.
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Yet corporate boards and investors remain hesitant. A survey by Cloudzero revealed that two-thirds of boards require proof of return before approving additional AI funding. Nearly 90% of finance leaders feel pressure to connect AI spending to business results within the next year, though only 22% have done so.
Market reactions reflect this unease. Alphabet’s stock fell 7% last week after the company increased its 2026 capital expenditure outlook to $195 billion–$205 billion. The jump stems from higher spending on AI infrastructure, even as supply struggles to keep up with demand.
“We are working in a supply-constrained environment, like the rest of the industry,” Alphabet CFO Anat Ashkenazi said during an earnings call. Google Cloud revenue climbed 82% year over year to $24.8 billion, but the spending increase unsettled investors.
A Janus Henderson Investors study found that 66% of investors worry about a potential AI bubble or market correction. Nine out of ten have at least some concerns about the technology, with 28% doubting it will meet expectations.
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For now, funds continue to flow into AI projects. Businesses are betting the investments will pay off eventually, though the timeline remains uncertain. The pressure to show results is growing, but so is the fear of lagging behind competitors.
Most organizations aren’t waiting for guarantees. They’re expanding data centers, upgrading servers, and funding AI models—hoping the infrastructure will deliver returns before skepticism grows.
Gartner’s forecast indicates the trend won’t slow soon. The gap between spending and measurable outcomes is widening, a tension that will shape tech investment in the coming years.
The firm didn’t specify how much of the $6.37 trillion is tied directly to AI, but Lovelock’s remarks confirm the technology is now the biggest factor in IT budgets.
