IT spending set to hit $1.4 trillion in 2026 - but what exactly are we spending it on? (www.techradar.com)

IT spending is projected to reach $1.43 trillion in 2026, marking an 11.1% increase fueled largely by the accelerating adoption of AI technologies. According to Gartner, significant investments in Generative AI models are driving much of this growth, especially in Europe, where spending in this area is expected to surge by 78.2%. The shift towards integrating advanced AI tools alongside cloud and cybersecurity commitments underscores a pressing industry trend towards efficiency and personalization, even amid tighter budgets and limited workforce expansion. The fastest-growing segment within IT spending is data center systems, which are anticipated to grow by 18.8% year-over-year, albeit remaining the smallest expenditure category. This investment trajectory is further complicated by geopolitical tensions prompting a preference for region-specific AI platforms, increasing from 5% to 35% in various countries. While the rising costs contribute to inflated spending figures, which may overstate genuine growth, this ongoing shift highlights the strategic push for autonomous AI capabilities within Europe and a notable growth in public cloud services by 24% as enterprises adapt to a complex regulatory landscape.