Gartner expects worldwide spending on information technology (IT) to reach $7.35 trillion in 2027, up 15% from 2026, crossing the $7 trillion mark for the first time. The research firm published the forecast on October 21, 2026, and names data center systems as the fastest-growing segment, up 55.5% next year on the back of AI infrastructure.
Gartner’s IT spending forecast in 20 seconds
- Worldwide IT spending will reach $7.35 trillion in 2027, up 15%.
- Data center systems will grow 55.5%, to $1.37 trillion.
- Software spending will reach nearly $1.68 trillion, up 14.6%.
- Gartner warns the memory price spike will last through 2027.
The figures are given in US dollars. For 2026, Gartner now estimates spending of $6.39 trillion, up 14.5% from 2025.
Data Centers Are Pulling Spending Up
Gartner’s table shows just how much AI is concentrating investment:
- Data center systems: $879 billion in 2026 (+73.8%) and $1.37 trillion in 2027 (+55.5%).
- Software: $1.46 trillion in 2026 (+15.2%) and $1.68 trillion in 2027 (+14.6%).
- IT services: $1.56 trillion in 2026 (+4.4%) and $1.63 trillion in 2027 (+4.9%).
- Infrastructure as a Service (IaaS): $292 billion in 2026 (+31.3%) and $367 billion in 2027 (+25.7%).
- Devices: $847 billion in 2026 (+7.2%) and $916 billion in 2027 (+8.1%).
- Communications services: $1.35 trillion in 2026 (+4.1%) and $1.39 trillion in 2027 (+2.9%).
John-David Lovelock, Distinguished VP Analyst at Gartner, said market forces are reinforcing spending on AI infrastructure, AI-ready cloud platforms, and advanced software ecosystems, and that digital-economy growth no longer depends only on software adoption, but also on the ability to finance, build, and monetize AI infrastructure. He added that this infrastructure is becoming both a technology platform and an asset to invest in. According to Gartner, AI infrastructure and software are the two areas that will define the next trillion dollars of growth.
Memory Is Driving Up Hardware Prices
Gartner says data center demand has more than doubled memory prices over the past 12 months, and that increase is spilling over into storage, servers, networking equipment, PCs, and other devices. Lovelock calls this effect “memflation” and expects it to last through 2027 before hardware prices start to stabilize. Higher prices inflate spending figures, but the firm also warns they’re squeezing purchasing power and will slow demand from end users.
A Forecast That Keeps Climbing
The forecast for 2026 has grown with every revision. In October 2025, Gartner was expecting spending of $6.08 trillion and 9.8% growth. In April 2026 it raised that to 13.5% growth, and it now puts the figure at 14.5%. The firm attributes the upgrade to investment from major cloud providers, private capital, and AI infrastructure financing initiatives, and it has revised up its long-term growth outlook for data center systems.
The forecast is based on an analysis of sales from more than 1,000 vendors and is part of Gartner’s quarterly update. The announcement doesn’t include a regional breakdown.
Frequently Asked Questions
How much will worldwide IT spending grow in 2027?
Gartner expects 15% growth, to $7.35 trillion, the first time it has topped $7 trillion.
Which segment will grow the most in 2027?
Data center systems, up 55.5% to $1.37 trillion, driven by AI infrastructure.
What is memflation?
It’s the term Gartner uses for the surge in memory prices, which have more than doubled in 12 months and are driving up the cost of all hardware.
How much will be spent on IT in 2026?
Gartner estimates $6.39 trillion, up 14.5% from 2025.
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