AI infrastructure remains the dominant growth driver, with a forecast that it will reach about $1.48 trillion in 2026 as AI-optimized IaaS, servers, network fabrics, processing semiconductors, and devices fuel demand, even as memory price fluctuations show resilience.

Enterprise AI spending is shifting from experimental budgets to standard technology investments, with many organizations outsourcing smaller AI-enabled projects through service providers, helping propel a $1.2 trillion AI services market by 2030.

In India and similar markets, there is a surge of hyperscaler and colocation investments to build AI-ready data centers, driving demand for high-density compute, robust power and cooling, and advanced network design, possibly guided by new policy incentives and regulatory frameworks.

Forecasts for AI application development platforms have been upgraded, signaling stronger demand for custom AI solutions as the market anticipates higher growth in 2026.

Global AI spending is expected to surpass $2.6 trillion in 2026 and continue rising toward $3.6 trillion by 2027, underscoring a broad, multi-year expansion across industries.

GenAI model spending and AI agents are growing but still trail infrastructure, with 2026 projections around $28.3 billion for GenAI models and $29.2 billion for AI assistants, both contingent on available compute and network capacity.

The overarching takeaway is that the AI market is increasingly infrastructure-led, with data center capacity expansion serving as a foundational driver for wider AI applications and services.

AI is becoming more embedded in enterprise software, with AI software spending rising from about $288 billion in 2025 to $462 billion in 2026, while AI cybersecurity spending is set to nearly double from about $26 billion to $51 billion in the same period.