Global IT spending will grow 10.8% to reach $6.15 trillion in 2026, Gartner said in its latest forecast, with AI infrastructure accounting for the lion’s share of that growth.

The forecast shows a spending spree that shows no signs of slowing down, despite growing chatter about an AI bubble. Enterprises and cloud providers alike are opening their wallets for AI-related hardware and software, with data center systems leading the charge, according to the research firm.

“AI infrastructure growth remains rapid despite concerns about an AI bubble, with spending rising across AI‑related hardware and software,” John-David Lovelock, distinguished VP analyst at Gartner said in the report. “Demand from hyperscale cloud providers continues to drive investment in servers optimized for AI workloads.”

The new forecast represents an upward revision from Gartner’s October projection of $6.08 trillion for 2026, suggesting the AI gold rush is accelerating rather than cooling off.

The numbers bear that out, with server and data center spending set to surge at rates far exceeding overall IT growth.

Data centers: Where the money’s going

If you want to know where IT budgets are headed in 2026, look no further than the data center. Spending on data center systems will jump 31.7% to top $650 billion, up from nearly $500 billion in 2025, a whopping $150 billion increase in a single year, the report said.

Server spending alone will rocket up 36.9% year-over-year, Gartner found, driven almost entirely by AI-optimized hardware. The hyperscalers, including AWS, Microsoft Azure, Google Cloud, and others, are in an arms race to build out the infrastructure needed to train and run increasingly large AI models.

It’s not just about more servers, either. These are specialized machines packed with high-end GPUs and custom silicon designed specifically for AI workloads, which explains the eye-watering price tags.

Software growth cools slightly, but GenAI stays hot

The software market is expected to continue growing nicely in 2026, although Gartner has slightly trimmed its forecast. Software spending growth is now projected at 14.7%, down from an earlier estimate of 15.2%, encompassing both application and infrastructure software.

“Despite the modest revision, total software spending will remain above $1.4 trillion,” Lovelock added in the report.

The real story in software is generative AI. “Projections for generative AI model spending in 2026 remain unchanged, with growth expected at 80.8%,” according to Gartner. “GenAI models continue to experience strong growth, and their share of the software market is expected to rise by 1.8% in 2026,” the report added.

That growth reflects how quickly GenAI is becoming table stakes across enterprise software. Whether it’s customer service platforms, development tools, or productivity suites, vendors are racing to embed AI capabilities into everything they sell—and charging accordingly.

Devices hit a speed bump

Not everything in IT land is growing gangbusters. The device market, including PCs, tablets, and smartphones, will see spending reach $836 billion in 2026, but growth will slow to just 6.1%, down from stronger performance in 2025, according to the forecast.

The culprit? Memory prices. “This slowdown is largely due to rising memory prices, which are increasing average selling prices and discouraging device replacements,” Lovelock explained. “Additionally, higher memory costs are causing shortages in the lower end of the market, where profit margins are thinner.” It’s a classic supply chain issue: memory manufacturers are prioritizing production of high-margin components for AI servers and data center gear, leaving the consumer and commercial device markets scrambling for supply, the report noted.