Gartner: AI-Optimized IaaS Spending to Hit $42 Billion in 2026

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Worldwide AI-optimized infrastructure as a service (IaaS) spending is projected to grow 96% through 2026, reaching $42 billion, according to Gartner, Inc., a business and technology insights company.

This growth is driven by continued demand for infrastructure to support large language model (LLM) training and the rapid operationalization of AI across enterprise applications and workflows,” saidHardeep Singh, Sr Principal Research Analyst at Gartner.

The market is forecast to sustain high growth and reach $66 billion in 2027 (see Table 1).

Table 1: Spending on Infrastructure as a Service, Worldwide, 2025-2027 (Millions of Dollars)

2025 Spending

2025 Growth (%)

2026 Spending

2026 Growth (%)

2027 Spending

2027 Growth (%)

Total AI-optimized IaaS Total IaaS222,17025.3287,34729.3359,89925.2

Source: Gartner (August 2026)

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