AI investment worldwide is projected to surpass $2 trillion in the next year, demonstrating where funds are allocated.
Global AI Spending Set to Soar to $3 Trillion by 2026
The world is witnessing an unprecedented surge in investments in Artificial Intelligence (AI) as spending on AI-optimized servers is projected to reach an astounding $329.5 billion by 2026. This surge is being driven by the expansion of AI infrastructure among big tech companies, according to Gartner's findings.
This period of rapid investment is not confined to traditional US tech giants. Chinese tech companies are also ramping up AI investment, expanding their presence in the global AI landscape. A notable example is the $500 billion Stargate Project, led by Oracle, OpenAI, and SoftBank, which aims to build out AI infrastructure across the US to meet the expected demand.
The generative AI race, initiated in late 2022, has placed a significant strain on colocation data center capacity, as JLL's analysis in late 2023 revealed. To address this, major tech firms have pledged billions in investment to accelerate infrastructure development, with the US president Donald Trump's state visit to the UK coinciding with a £22 billion investment pledge from Microsoft aimed at accelerating infrastructure development.
Google has also announced plans for £5 billion in spending to expand data center infrastructure. Global AI investment is projected to reach $2 trillion by 2026, with the majority of investment in 2025 focused on AI services, amounting to $282.5 billion. This represents a significant increase compared to the $244.7 billion in spending on AI smartphones across 2024.
The largest part of AI investments in 2025 lies in building and expanding AI infrastructure, particularly in new AI data centers and cloud computing capacity. Major investments by companies like Microsoft, Meta, and Alphabet total hundreds of billions of dollars globally. Nvidia announced £11 billion in spending to host Europe's largest GPU cluster in the UK.
Integration of AI within products such as smartphones and PCs will contribute to the overall surge in AI spending. Spending on AI-optimized servers, including GPUs and non-GPU AI accelerators, will top $267 billion in 2025. By 2026, spending on AI smartphones is expected to account for the largest pool of investment, reaching $393 billion.
However, the hyperscaler AI spending trend is raising concerns about data centers keeping pace with adoption rates. The generative AI race has brought about a need for more data center capacity, with Gartner's previous research on infrastructure demands showing that data center capacity was expected to double by 2028.
Venture capital investment in AI providers is providing additional tailwinds for AI spending. The AI infrastructure expansion spree is a clear indication of the growing importance of AI in the global economy and the race to harness its potential.
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