Gartner: IT spending in Australia to exceed $172bn in 2026

IT spending in Australia is expected to reach A$172.3 billion in 2026, an increase of 8.9 per cent from 2025, according to Gartner.

Gartner predicted spending on data centre systems in Australia by enterprises and service providers will see the largest growth, increasing 22.5 per cent to A$10.1 billion.

Within this category, server spending will increase 30 per cent to reach A$7.7 billion in 2026, driven by investments in AI-optimised servers to support GenAI adoption.

Software will be the largest IT spending category in Australia in 2026, overtaking IT services, with Gartner forecasting software spending in Australia will reach almost A$60 billion in 2026, a 13.6 per cent increase from 2025.

Gartner also predicts by 2028, 75 per cent of spend will be on software with GenAI functionality, as emerging use cases unlock new efficiencies and capabilities in software solutions.

Australian IT Spending Forecast 2025-2026 (Millions of AU Dollars)

Source: Gartner (September 2025)

“Despite an uncertain environment, investments in AI, cybersecurity and cloud will continue to drive new IT spending in Australia next year,” said Andy Rowsell-Jones, distinguished VP analyst at Gartner.

“With AI firmly in the spotlight, Australian organisations are widening their focus from generative AI (GenAI) towards investments in other related AI technologies for real-time intelligence and operational scalability, helping ensure long-term success.

Rowsell-Jones also said that Australian organisations are rapidly migrating to AI-enabled software and cybersecurity tools to enhance workflows, manage compliance and combat threats, which are both commonly delivered as software services.

“In particular, GenAI is transforming the software landscape by enabling more intelligent, efficient and personalised applications," he said.

“The rapid expansion of hyperscale data centres for GenAI is driving huge demand for power, which utility providers struggle to keep up with,” said John-David Lovelock, distinguished VP analyst at Gartner.

“It is encouraging to see such strong growth continuing in data centre spending, as enterprises and service providers work together on solutions to support rapid GenAI growth.”

Gartner analysts are discussing the latest CIO investment trends this week at Gartner IT Symposium/Xpo, taking place on the Gold Coast until Wednesday.