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Software spending will grow 15.1% to $1.44 trillion, with generative AI (GenAI) playing a major role. Companies will more than double their investment in GenAI model development year over year, reinforcing software as a key growth engine.Global IT spending is set for a sharp rise in 2026, fueled by accelerating demand for AI infrastructure and software. According to Gartner, worldwide spending will reach $6.31 trillion, marking a 13.5% increase year over year.

For Europe’s electronics and semiconductor ecosystem, this surge signals expanding opportunities in high-performance compute, memory, and AI-driven system design. It also highlights where investment and innovation are likely to concentrate across the value chain.

AI infrastructure fuels data center boom

The standout growth area is data center systems, projected to jump 55.8% to nearly $788 billion in 2026. This reflects a rapid scaling of AI workloads and hyperscale cloud deployments, which are pushing demand for advanced processors, accelerators, and high-bandwidth memory.

“This latest forecast underscores the accelerating momentum in AI infrastructure and advanced memory,” said John-David Lovelock, Distinguished VP Analyst at Gartner. “As AI workloads scale, data center investment is ramping rapidly, which in turn is driving increased demand for high-performance compute. This dynamic is creating meaningful growth opportunities for companies delivering AI-optimized processors, accelerators, and enabling technologies.”

Memory is emerging as a particularly lucrative segment. Strong demand combined with supply constraints has led to record price increases for high-bandwidth memory, creating favorable conditions for semiconductor suppliers.

Software and services gain, devices face pressure

Beyond hardware, software spending is forecast to grow 15.1% to $1.44 trillion, with generative AI (GenAI) playing a major role. Investment in GenAI model development is expected to more than double year over year, reinforcing software as a key growth engine.

IT services remain the largest spending category overall, reaching $1.87 trillion, driven by demand for cloud infrastructure, implementation, and managed services. Hyperscaler activity continues to outpace traditional IT segments, contributing to what Gartner describes as a “multi-speed” market.

Device spending, meanwhile, will grow more modestly at 8.2% to $856 billion. Rising memory costs are increasing average selling prices and slowing replacement cycles, particularly in lower-margin segments.

“Together, these dynamics highlight a widening divergence across IT markets, as AI infrastructure and GenAI software see substantial upward revisions while device growth reflects ongoing cost and pricing pressures,” Lovelock added.

Overall, the revised forecast points to stronger-than-expected momentum across AI-related segments, with implications for chipmakers, system designers, and European tech firms positioning themselves in the evolving AI supply chain.

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