Gartner Projects 15% Growth in Global IT Spending to $7.3 Trillion by 2027 Driven by AI Demand

The projected 15% growth in global IT spending underscores the escalating importance of artificial intelligence in shaping market dynamics.

• Gartner forecasts global IT spending to reach $7.3 trillion in 2027, a 15% increase from 2026.
• Data center systems are expected to grow by 55%, driven by high demand for AI workloads.
• Infrastructure as a Service (IaaS) spending is projected to hit $367 billion, reflecting a shift in IT consumption models.

• AI adoption is accelerating, with companies investing heavily in infrastructure to support advanced computing needs.
• Supply constraints are impacting the availability of AI-optimized servers, leading to increased prices and longer wait times for orders.
• Investor interest in AI-related equities remains strong, despite challenges in accurately valuing AI-driven growth.

The Gartner forecast, published on October 21, 2026, reveals a significant shift in the global IT landscape, primarily fueled by the rapid adoption of artificial intelligence technologies. As organizations increasingly integrate AI into their operations, the demand for robust IT infrastructure has surged. This is particularly evident in the data center sector, where spending is projected to grow by an astonishing 55%. The inability to construct new facilities quickly enough to accommodate AI workloads is a critical factor driving this growth.

Infrastructure as a Service (IaaS) is also experiencing a notable expansion, with spending expected to reach $367 billion. This shift reflects a broader trend towards cloud-based solutions, allowing businesses to scale their IT resources dynamically. The ongoing multi-year AI infrastructure buildout by hyperscale cloud providers and technology firms is characterized by escalating capital expenditures on chips, servers, and data centers. This trend has been building since 2023, as previous reports from Gartner and IDC indicated double-digit growth in IT spending linked to generative AI.

However, the rapid growth comes with challenges. Gartner analyst John-David Lovelock highlighted the extreme demand-supply imbalances in the market, noting that orders for AI servers continue to pour in even as prices have doubled. This indicates a strong commitment from businesses to invest in AI capabilities, despite the rising costs. The persistent supply constraints are a significant concern, as they could hinder the ability of companies to scale their AI initiatives effectively.

Moreover, the report emphasizes the ongoing debates among investors regarding the valuation of AI-driven growth. While the metrics indicate robust expansion, the complexities of the AI market make it difficult to assess long-term profitability and sustainability. As a result, investors are closely monitoring the performance of AI-related equities, seeking to identify which companies will emerge as leaders in this rapidly evolving landscape.

• Tech companies: Increased demand for AI infrastructure will drive up costs and influence pricing strategies.
• Cloud service providers: They will need to expand their offerings to meet the growing demand for IaaS.
• Businesses adopting AI: Companies integrating AI into their operations will face higher costs and potential delays in accessing necessary technology.
• Investors: They will need to navigate the complexities of valuing AI-driven growth amidst supply constraints.

• Supply chain developments: Monitor how supply constraints on AI-optimized servers evolve, as this will impact pricing and availability.
• Investment trends: Keep an eye on investor sentiment towards AI-related equities, which could signal shifts in market confidence.
• Technological advancements: Watch for breakthroughs in AI infrastructure that could alleviate current supply issues and drive further growth.