AI Surge Set to Drive Record IT Spending in 2026
- Chalani Himasha
- 8 minutes ago
- 2 min read
Himasha Dissanayake, JadeTimes Staff
H. Dissanayake is a Jadetimes news reporter covering Technology
Source: Free Press Space
The IT industry is poised for one of its strongest years since the mid-1990s, with artificial intelligence driving unprecedented growth. Analysts predict that global IT spending will rise by 10% in 2026, surpassing $6 trillion, following an already strong 2025.
AI-focused data centers are leading this surge, with the $500 billion data center market expected to grow nearly 20%. Nvidia, the top AI chip seller, is benefiting from rapidly selling AI-optimized servers, while North America accounts for half of the global AI server spending. Tech giants including Alphabet, Amazon, Meta, and Microsoft are expected to drive two-thirds of these investments.
Generative AI systems are also seeing explosive sales, with a projected 67% annual growth in spending through 2029. Software, cloud computing, and IT services are experiencing strong demand, as companies integrate AI capabilities into analytics, sales, and supply chain management tools. Experts warn that software without AI features risks falling behind.
Consumer electronics are not left out, with smartphones and PCs seeing growth as AI-enabled devices gain popularity. Broader trends, such as the shift to cloud computing and the expiration of Windows 10 support, further bolster IT investments.
Analysts caution that while this spending surge may not be sustainable indefinitely, there are currently no signs of a bubble. AI is increasingly seen as a necessity for competitiveness, with key IT categories like AI tools, software, and security remaining largely immune to budget cuts.
Businesses are encouraged to establish AI policies, test pilot projects, and integrate AI tools for productivity, such as summarizing meetings and analyzing data. As 2026 approaches, companies that strategically embrace AI are likely to gain a competitive edge.
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