He IT spending in Europe will reach $1.4 billion by 2026which marks an increase of 11.1% compared to 2025, the year in which it is on track to reach 1.3 billion, according to forecasts and data from the consulting firm Gartner.
In 2026, investment in software will continue to be a priority for European companies and organizations, as they aim to have smarter, more efficient and personalized applications. Additionally, rising prices across all software categories are leading to an increase in spending in this area.
The hardware and devices sector will also see growth, as manufacturers add AI features to devices and raise prices to offset the cost of additional hardware to integrate them.
The push for AI infrastructure development will continue to drive server demand and growth expectations. Above all, those specially prepared to work with AI and its workloads. In Europe, forecasts suggest that end-user investment in AI-optimized servers will reach $46.8 billion in 2026, compared to $39.3 billion expected for 2025.
The consulting firm also predicts that by 2027, 35% of countries will be linked to AI platforms specific to each region and that use their own contextual data. In addition, its analysts point out that platform blocking will rise from 5% to 35% in 2027, as governments will urge the main cloud providers to collaborate with local companies to make their platforms more regional. All in order to meet regulatory requirements and support national interests.
According to John David Lovelock, Vice President Analyst at Gartner«AI, cloud and cybersecurity are driving increased IT spending for European organizations in 2026. Despite IT budget constraints and minimal workforce growth, CIOs in Europe will spend significantly on software to access new AI capabilities from their current vendors. Gartner forecasts end-user spending on generative AI models in Europe to grow 78.2% in 2026«.
Lovelock also points out that cloud investments in Europe will be more complex in 2026, as IT leaders focus on digital sovereignty and move their cloud services to a location closer to their own. Additionally, Gartner predicts end-user investment in public cloud services will increase by 24% in 2026.
For this analyst, Europa faces different regulatory pressures, competition between countries, geopolitical tensions and national security concerns. All in a framework that focuses on ensuring that Europe can develop and manage AI systems on its own, and without depending on platforms or providers outside the region. So, while software vendors are adding AI capabilities to their products, AI platforms built for Europe are becoming part of a prominent national infrastructure.
