TLDR: Australian organizations are significantly increasing their investments in artificial intelligence, cybersecurity, and cloud technologies, with overall IT spending projected to reach A$172.3 billion by 2026. This surge is driven by a strategic shift towards diverse AI applications beyond generative AI, aiming for real-time intelligence and operational scalability. A key development includes Macquarie Data Centres’ plan to host the Dell AI Factory with Nvidia infrastructure, catering to the escalating demand for secure GenAI infrastructure in regulated sectors.
Australian organizations are poised for a substantial increase in their artificial intelligence (AI) initiatives, contributing to a projected surge in national IT spending to A$172.3 billion by 2026. This forecast, released by Gartner at the IT Symposium/Xpo on the Gold Coast on September 8, 2025, indicates an 8.9% year-on-year increase from 2025, underscoring a robust corporate commitment to advanced technologies.
According to Andy Rowsell-Jones, a distinguished vice-president analyst at Gartner, Australian organizations are broadening their AI focus beyond just generative AI (GenAI). The strategic shift is towards investments in a wider array of AI technologies designed to enhance real-time intelligence and operational scalability, ensuring long-term success.
This accelerated investment is particularly evident in data center systems, which are anticipated to expand by 22.5% in 2026, reaching A$10.1 billion. A significant portion of this growth, specifically 30%, is allocated to server spending, projected to hit A$7.7 billion, as companies heavily invest in AI-optimized hardware to support demanding GenAI workloads.
Further solidifying Australia’s commitment to AI infrastructure, Macquarie Data Centres announced in August 2025 its plans to host the Dell AI Factory with Nvidia infrastructure platform. This initiative aims to provide sovereign facilities for Australian organizations, especially those in highly regulated sectors like finance, healthcare, and government, with a local, secure, and compliant platform for developing and deploying advanced AI applications such as private large language models (LLMs), agentic AI, and digital twins.
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The report highlights that Australian organizations are rapidly adopting AI-enabled software and cybersecurity tools. These tools are crucial for streamlining workflows, managing compliance, and effectively combating evolving cyber threats, often delivered as software services. Gartner predicts a long-term transformation of the software landscape as GenAI capabilities become increasingly embedded into product suites, enabling more intelligent, efficient, and personalized applications.
