Gartner has dramatically revised its global IT spending forecast, raising expectations for 2025 and 2026 due to surging demand for generative AI infrastructure. The research firm now projects total worldwide IT spending to exceed $6 trillion for the first time in 2026—nearly a year ahead of its previous forecast from July. This marks a significant acceleration, with 2025 spending expected to reach $5.54 trillion, a 10% increase from the $5.04 trillion spent in 2024. A key driver behind this surge is the explosive growth in datacenter systems spending, fueled by AI model builders and their cloud partners. Gartner reports that datacenter systems spending hit $333.4 billion in 2024, nearly double the pre-pandemic level and a 40.3% increase from 2023’s $238.6 billion. This spending includes servers, storage, and networking equipment. The growth is expected to continue at a rapid pace, with a projected 46.8% increase in 2025 to $489.5 billion, followed by a 19% rise in 2026 to $582.5 billion. This level of investment far outpaces global GDP growth. While the world economy is expected to grow at a moderate pace, IT spending—especially in datacenter systems—is increasing at a rate that is multiple times higher. Gartner’s data shows that the growth in datacenter systems spending is now a major engine of global technology investment, with the 2026 forecast now exceeding what was expected for 2028 just earlier this year. Inflation is a factor in the numbers, but not the full story. When adjusted for inflation using the U.S. Consumer Price Index and average expected rates for 2025 and 2026, the real increase in datacenter systems spending from 2019 to 2026 is still a substantial 2.55 times, even if slightly less than the 3.35 times seen in nominal terms. This indicates that the growth is not just a function of price increases but also a true expansion in capital investment. Beyond hardware, enterprise software spending is also rising, driven by demand for AI-powered tools like copilots, code assistants, and enhanced ERP, CRM, and SCM systems. These AI-integrated applications are more complex and costly than previous generations, contributing to higher software budgets. Gartner’s updated forecast also includes growth in IT services, devices, and telecom services, with core IT spending (datacenter systems, software, and services) consistently outpacing overall IT spending and global GDP. The only major event that has previously disrupted this pattern was the pandemic in 2020, but the current AI-driven investment cycle is now the dominant force shaping the market. In short, the generative AI boom has moved from a slow burn to a high-velocity expansion, with datacenter investments at the center. The scale of this shift is redefining the technology economy, and Gartner’s latest numbers suggest the momentum is just beginning.