Australian businesses are opening their wallets when it comes to tech. Gartner’s latest forecast says IT spending will hit AUD 172.3 billion in 2026, that’s almost 9% higher than 2025.

The big drivers? AI, cybersecurity, cloud and the push to modernise data centres.

Spending on data centre systems is expected to climb 22.5% in 2026, reaching about AUD 10.1 billion. Within that, server investment alone is forecast to jump nearly 30% as companies gear up for AI workloads.

Software will also surge, growing 13.6% to almost AUD 60 billion, overtaking IT services as the largest category. Much of this will be in AI-enabled platforms, cybersecurity solutions, and workflow automation.

Meanwhile, IT services are set to grow steadily, from AUD 55.7 billion in 2025 to AUD 58.8 billion in 2026. This reflects the continued move towards outsourcing, as organisations look to managed service providers to deliver consistent performance and compliance.

Even devices, often seen as a flat category, are predicted to rise 6.6%, with hybrid work keeping demand for laptops and endpoint upgrades strong.

All of this paints a clear picture: Australian organisations are shifting from one-off technology purchases to integrated, AI-ready solutions that promise speed, security, and scalability.