AI infrastructure demand shifts MENA IT spending - Gartner
Investment in data centre infrastructure estimated to grow by 69% in 2025
#MENA #spending - Global research and advisory firm Gartner predicts that data centre systems will remain the highest-growth segment for IT spending in the Middle East and North Africa (MENA) region during 2026 with a 37.3% expansion to $13 billion, compared to current 2025 estimates. Driven by fast-growing demand for AI compute and AI cloud services, current estimates put 2025 expenditure at 48% higher than Gartner’s November 2024 estimate for the year of $6.4 billion. The analyst firm attributes the surge in spending on AI infrastructure to growth fast-growing demand for AI-enabled software, Generative AI and machine learning. Demand for infrastructure is rising across governments, hyperscalers, technology providers and organisations building and deploying AI models.
Overall, Gartner projects that IT spending $169 billion in 2026, with 8.9% expected growth compared to 2025, according to global research and advisory firm Gartner's latest forecast. Meanwhile, software spending is expected to grow 13.9% to $20.4 billion as organisations accelerate GenAI capabilities deployment. Gartner predicts 75% of global software expenditure will target AI-enabled solutions by 2028.
SO WHAT? - 2025 has proved to be especially active for AI infrastructure deals. Gartner’s November 2024 forecast for data centre spending in 2025 was a 14.9% increase on 2024’s spending, but, now the estimate for MENA data centre spending in 2025 shows a 69% increase on 2024 spend. The forecast for data centre expenditure in 2026 is now about $13 billion, showing a 37% increase in 2025. However, we must bear in mind that hardware and software orders for AI infrastructure deals will often be placed phase-by-phase over a number of quarters or years, and the speed of implementation varies a a great deal. So, we can expect that prediction to vary also over the next year.
Here are some key points from the new Gartner forecast;
Gartner forecasts Middle East and North Africa (MENA) IT spending will reach $169 billion in 2026, marking 8.9% growth from $155.2 billion in 2025
Data centre systems spending projected to grow 37.3% to $13 billion in 2026, maintaining position as highest-growth IT segment despite slower pace than 2025's 69.3% expansion.
According to the analyst firm, AI infrastructure investments are being driven primarily by governments, hyperscalers and technology providers rather than traditional enterprise buyers, catering to a rapid increase in AI usage and local AI development.
Software expenditure is expected to increase 13.9% to $20.4 billion as organisations accelerate generative AI adoption across enterprise applications and productivity tools.
IT services spending is projected to grow 8.3% to $36.9 billion as AI integration reshapes regional technology priorities and business strategies.
Regional chief information officers continue to make strategic investments in intelligent automation, multi-cloud strategies and enhanced cybersecurity defences despite global economic uncertainty.
Gulf Cooperation Council nations leverage political stability, advanced infrastructure and progressive policies to attract global technology partnerships and develop AI-fluent workforces.
Gartner predicts 75% of worldwide software spending will target solutions with generative AI functionality by 2028, reflecting fundamental changes in technology adoption.
ZOOM OUT - The changing technology landscape, rapid investment in AI across the GCC, regional economics and global economics all have an impact on IT spending across the Middle East and North Africa. So, it’s not a complete surprise that Gartner’s forecast for 2025 has changed significantly since November 2024. Overall, Gartner had predicted an IT spend of nearly $215 billion for MENA in 2025, but has now revised this down to $155 billion: a difference of almost $60 billion. This can largely be attributed to a 54% drop in spending on communications services compared with the analyst’s original forecast. Meanwhile, IT services have outperformed Gartner’s predictions, with spend rising 35% in 2025 compared with its 2024 forecast.
[Written and edited with the assistance of AI]
Read about Gartner’s 2025 predictions from November 2024:
AI to drive MENA software & services spending in 2025 (Middle East AI News)