Global IT Expenditure Projected to Reach $7.35 Trillion by 2027

Global IT expenditure is forecasted to reach $7.35 trillion in 2027, representing a 15% increase over 2026 levels, according to Gartner. Driven by accelerated AI investment across the entire technology stack, total spending is projected to surpass the $7 trillion threshold for the first time.

“Market forces are currently driving concentrated spending on AI infrastructure, cloud platforms, and advanced software ecosystems,” stated John-David Lovelock, Distinguished VP Analyst at Gartner. “The growth of the digital economy is increasingly reliant not just on software adoption, but on the capacity to finance and monetize AI infrastructure on an unprecedented global scale.”

The projected growth is being primarily influenced by two key sectors: AI infrastructure and AI software. Investment in AI-optimized servers, IaaS, and software platforms remains robust as enterprises seek to industrialize their AI deployments. However, hardware markets continue to face significant pressure from inflation related to memory components.

Over the last 12 months, demand for data center systems has caused memory prices to more than double, impacting storage, servers, and PC supply chains. “This ‘memflation’ effect is expected to continue through 2027 before hardware costs begin to stabilize,” Lovelock noted. “While higher average selling prices support overall spending growth, the resulting impact on affordability is likely to constrain end-user demand throughout this period.”

Long-term forecasts indicate a continued upward revision for data center systems, solidifying the role of AI infrastructure as the foundational layer of the modern economy. Unlike previous cycles where infrastructure supported software, hardware is now increasingly viewed as a strategic investment asset in its own right.

“Supported by hyperscaler capital, private equity, and specialized financing, AI infrastructure is maturing into both a technology platform and a distinct asset class,” Lovelock concluded. “Consequently, spending in these sectors is expected to reach historic highs, serving as the primary driver for sustained growth across the broader global IT market.”