Global IT Spending to Reach $7.35 Trillion by 2027
Rising memory costs driven by AI infrastructure demand will shape global IT spending through the end of the decade.
Updated on Oct. 21, 2026 in Data Centers
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Global IT spending is projected to reach $7.35 trillion by 2027, marking a 15% increase driven largely by industrializing AI deployment. This expansion comes as memory prices have more than doubled over the past year due to intense demand from data centers.
Why it matters
Technology providers are prioritizing investments in AI infrastructure to secure their position as the foundational layer of the global digital economy. This focus is funneling capital into server and networking supply chains to meet the needs of hyperscalers.
Global IT spending is forecast to hit $7.35 trillion by 2027, an increase of 15% supported by AI infrastructure investment. Memory prices have already doubled, a phenomenon dubbed memflation that is straining storage and server supply chains.
The players
Gartner
Gartner is a global research and advisory firm that provides information, advice, and tools for leaders in IT, finance, and other business sectors.
The details
The current surge in memory pricing, or memflation, has forced technology providers to launch forward-deployed engineering programs to stabilize enterprise AI projects. This inflationary pressure is expected to continue impacting hardware costs until 2030.
Timeline
Memory prices doubled between 2025 and 2026 due to data center demand.
Global IT spending is projected to reach $7.35 trillion in 2027.
The memflation effect is projected to persist until 2030.
The Tech Race
This investment surge follows the established trajectory of Gartner's global IT spending forecast. It highlights how the industry is replacing traditional hardware budgets with massive capital allocation toward AI-centric, foundational infrastructure.
Consumers should expect higher prices for personal computers, laptops, and mobile phones as hardware manufacturers pass on increased memory costs. These budgetary pressures on consumer electronics are likely to remain a factor for several years.
The takeaway
The rapid industrialization of AI is fundamentally restructuring global hardware costs and enterprise spending patterns. Readers should anticipate sustained price volatility in consumer technology as supply chains adapt to these infrastructure demands.
Further reading
For more information on infrastructure requirements, visit Data Centers.
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