{"id":358973,"date":"2025-09-08T11:57:48","date_gmt":"2025-09-08T06:27:48","guid":{"rendered":"https:\/\/www.technologyforyou.org\/?p=358973"},"modified":"2025-09-08T11:57:48","modified_gmt":"2025-09-08T06:27:48","slug":"gartner-forecasts-it-spending-in-australia-to-exceed-172-billion-in-2026","status":"publish","type":"post","link":"https:\/\/www.technologyforyou.org\/gartner-forecasts-it-spending-in-australia-to-exceed-172-billion-in-2026\/","title":{"rendered":"Gartner Forecasts IT Spending in Australia to Exceed $172 Billion in 2026"},"content":{"rendered":"
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Analysts Discuss Technology Trends During Gartner IT Symposium\/Xpo 2025 on the Gold Coast, September 8-10<\/span><\/strong><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n

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IT spending in Australia is expected to reach A$172.3 billion in 2026, an increase of 8.9% from 2025, according to Gartner, Inc. a business and technology insights company.\u00a0<\/span><\/strong><\/p>\n

\u201cDespite an uncertain environment, investments in AI,\u00a0cybersecurity<\/a>\u00a0and\u00a0cloud<\/a>\u00a0will continue to drive new IT spending in Australia next year,\u201d said\u00a0Andy Rowsell-Jones<\/a>, Distinguished VP Analyst at Gartner. \u201cWith AI firmly in the spotlight, Australian organizations are widening their focus from generative AI (GenAI) towards investments in other related\u00a0AI technologies<\/a>\u00a0for real-time intelligence and operational scalability, helping ensure long-term success.\u201d<\/span><\/p>\n

Gartner analysts are discussing the latest CIO investment trends this week at\u00a0Gartner IT Symposium\/Xpo<\/a>, taking place on the Gold Coast until Wednesday.<\/span><\/p>\n

Investments in AI-related\u00a0infrastructure<\/a>\u00a0will continue to surge in 2026. Gartner forecasts spending on data center systems in Australia by enterprises and service providers will see the largest growth, increasing 22.5% to A$10.1 billion. Within this category,\u00a0server spending<\/a>\u00a0will increase 30% to reach A$7.7 billion in 2026, driven by investments in AI-optimized servers to support\u00a0GenAI<\/a>\u00a0adoption (Table 1).<\/span><\/p>\n

Table 1. Australian IT Spending Forecast 2025-2026 (Millions of AU Dollars)<\/strong><\/span><\/p>\n\n\n\n\n\n\n\n\n\n
 <\/td>\n2025\u00a0<\/strong><\/span><\/p>\n

Spending\u00a0<\/strong><\/span><\/td>\n

2025\u00a0<\/strong><\/span><\/p>\n

Growth (%)\u00a0<\/strong><\/span><\/td>\n

2026\u00a0<\/strong><\/span><\/p>\n

Spending\u00a0<\/strong><\/span><\/td>\n

2026\u00a0<\/strong><\/span><\/p>\n

Growth (%)\u00a0<\/strong><\/span><\/td>\n<\/tr>\n

\u00a0Data Center Systems<\/span><\/td>\n8,219\u00a0<\/span><\/td>\n22.5\u00a0<\/span><\/td>\n10,071\u00a0<\/span><\/td>\n22.5\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0Devices<\/span><\/td>\n15,385\u00a0<\/span><\/td>\n7.4\u00a0<\/span><\/td>\n16,406\u00a0<\/span><\/td>\n6.6\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0Software<\/span><\/td>\n52,768\u00a0<\/span><\/td>\n11.3\u00a0<\/span><\/td>\n59,945\u00a0<\/span><\/td>\n13.6\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0IT Services<\/span><\/td>\n55,688\u00a0<\/span><\/td>\n3.8\u00a0<\/span><\/td>\n58,782\u00a0<\/span><\/td>\n5.6\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0Communications Services<\/span><\/td>\n26,112\u00a0<\/span><\/td>\n3.7\u00a0<\/span><\/td>\n27,061\u00a0<\/span><\/td>\n3.6\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0Overall IT<\/strong><\/span><\/td>\n158,172\u00a0<\/strong><\/span><\/td>\n7.4\u00a0<\/strong><\/span><\/td>\n172,265\u00a0<\/strong><\/span><\/td>\n8.9\u00a0<\/strong><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Source: Gartner (September 2025)<\/sup><\/span><\/p>\n

\u201cThe rapid expansion of hyperscale data centers for\u00a0GenAI<\/a>\u00a0is driving huge demand for power, which utility providers struggle to keep up with,\u201d said\u00a0John-David Lovelock<\/a>, Distinguished VP Analyst at Gartner. \u201cIt is encouraging to see such strong growth continuing in data center spending, as enterprises and service providers work together on solutions to support rapid GenAI growth.\u201d<\/span><\/p>\n

Largest Spending Directed to Software<\/strong><\/span>
\nSoftware will be the largest IT spending category in Australia in 2026, overtaking IT services. Gartner forecasts software spending in Australia will reach almost A$60 billion in 2026, a 13.6% increase from 2025.<\/span><\/p>\n

\u201cAustralian organizations are rapidly migrating to AI-enabled software and\u00a0cybersecurity<\/a>\u00a0tools to enhance workflows, manage compliance and combat threats, which are both commonly delivered as software services,\u201d said Rowsell-Jones. \u201cIn particular, GenAI is transforming the software landscape by enabling more intelligent, efficient and personalized applications.\u201d<\/span><\/p>\n

Technology vendors are rapidly integrating GenAI-driven capabilities into their products to capitalize on early monetization opportunities and stay competitive as GenAI adoption becomes a key differentiator in software. Gartner predicts by 2028, 75% of spend will be on software with GenAI functionality, as emerging use cases unlock new efficiencies and capabilities in software solutions.<\/span><\/p>\n<\/article>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Analysts Discuss Technology Trends During Gartner IT Symposium\/Xpo 2025 on the Gold Coast, September 8-10 IT spending in Australia is expected to reach A$172.3 billion in 2026, an increase of 8.9% from 2025, according to Gartner, Inc. a business and technology insights company.\u00a0 \u201cDespite an uncertain environment, investments in AI,\u00a0cybersecurity\u00a0and\u00a0cloud\u00a0will continue to drive new IT […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14083],"tags":[],"class_list":{"0":"post-358973","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-technology-industry-news"},"_links":{"self":[{"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/posts\/358973","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/comments?post=358973"}],"version-history":[{"count":0,"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/posts\/358973\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/media?parent=358973"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/categories?post=358973"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/tags?post=358973"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}