Global tech spending is skyrocketing, and European firms are doubling down on investment

Global tech spending is rising relentlessly, new research shows, driven by AI, the cloud, and growing cybersecurity concerns.

According to Gartner, worldwide IT spending is expected to reach $6.15 trillion in 2026, up 10.8% from last year.

“AI infrastructure growth remains rapid despite concerns about an AI bubble, with spending rising across AI‑related hardware and software,” said John-David Lovelock, distinguished VP analyst at Gartner.

“Demand from hyperscale cloud providers continues to drive investment in servers optimized for AI workloads.”

Server spending will accelerate in 2026, the firm noted, growing 36.9% year-over-year. Total data center spending is expected to increase by 31.7% to more than $650 billion, up from nearly $500 billion in 2025.

Software spending, meanwhile, is predicted to increase by 15.2% for both application and infrastructure software, while spending on generative AI is expected to rocket by 80.8%.

Device growth, however, is expected to slow in 2026, at 6.1%, with total spending on devices projected to reach $836 billion in 2026.

“This slowdown is largely due to rising memory prices, which are increasing average selling prices and discouraging device replacements,” said Lovelock.

“Additionally, higher memory costs are causing shortages in the lower end of the market, where profit margins are thinner. These factors are contributing to more muted growth in device shipments.”

Bullish European tech spending

The picture is much the same when it comes to European tech spending, according to figures from Forrester. The consultancy predicts tech spending across the region to hit €1.5 trillion for the first time this year.

Despite the economic impact of US tariffs, particularly on Ireland, the EU economy remains resilient, with real GDP growth in 2026 expected to hit the same level as in 2025.

More than 70% of tech spend growth between 2025 and 2030 will stem from enterprise and government investments in computer equipment and software, the Forrester found.

“In spite of economic volatility worldwide, tech spending will see robust growth, fueled by the defense, financial services, healthcare, industry, and retail sectors’ continued investment in and adoption of AI,” said Michael O’Grady, principal forecast analyst at Forrester.

“Our research finds, however, that in order to successfully manage the impacts of tariffs, trade wars, and strong AI investment in the year ahead, businesses will need to prioritize AI initiatives that both drive productivity and foster the growth of AI-driven tech talent.”

As for the UK, things are moving fast from AI experimentation to performance - particularly in the financial sector, where three-quarters of institutions have already adopted AI technologies.

"We are witnessing a bold commitment to R&D, with defense and healthcare leading the charge; specifically, NHS technology spend is on track to nearly double to £10 billion by 2029," he said.

"Despite external economic pressures and tariff risks, the UK’s strategy to increase AI compute capacity and target £22.6 billion in R&D spending by 2030 signals a clear, long-term vision for technological leadership."

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