Short answer: AI infrastructure is the fastest-growing part of technology budgets. Gartner forecasts worldwide IT spending of $6.32 trillion in 2026, up 13.5%, with data center systems growing 55.8%. At the same time, the Flexera 2026 State of the Cloud Report estimates that 29% of cloud infrastructure spend is wasted, the first increase in 5 years, driven by AI workloads.

Key AI and cloud spend data at a glance

• $6.32 trillion worldwide IT spending forecast for 2026, up 13.5% (Gartner, April 2026).
• 55.8% growth in data center systems spending in 2026, to about $788 billion (Gartner).
• 29% of IaaS and PaaS spend estimated as wasted, the first rise in 5 years (Flexera via TechInformed).
• 81% of organizations use generative AI, and 45% use it extensively in production (Flexera).
• 63% have a FinOps team, and 85% name managing cloud spend as a top challenge (Flexera).

[Table 1]

Why is cloud waste rising again?

• Unpredictable AI usage. Inference costs scale with usage patterns that are hard to forecast.
• New services, old controls. GPU instances, managed model APIs and vector databases often sit outside existing cost tagging.
• Experimentation sprawl. Pilots launch quickly and are rarely shut down on schedule.

[Table 2]

What should CTOs do about AI and cloud costs?

1. Make every team see its own spend. Cost visibility per team and per feature is the base of FinOps.
2. Set unit economics. Track cost per customer, per transaction or per AI request, not only total spend.
3. Put an end date on pilots. Every AI experiment gets a budget, an owner and a review date.
4. Choose models by task. Smaller or cheaper models often handle routine tasks at a fraction of the cost.
5. Report spend with outcomes. Show the board AI cost next to the value it delivers, as covered in measuring AI coding ROI.

What does this mean for technology leadership roles?

Cost ownership is now part of the CTO job description. Private equity owners and boards expect technology leaders to explain AI and cloud spend in business terms. Leaders with FinOps and AI infrastructure experience are increasingly valued, as covered in AI-native CTO compensation.

Frequently asked questions

How much will companies spend on IT in 2026?

About $6.32 trillion worldwide, up 13.5% from 2025, according to Gartner's April 2026 forecast.

How much cloud spend is wasted?

Flexera's 2026 survey estimates 29% of IaaS and PaaS spend is wasted, the first increase in 5 years.

What share of companies have a FinOps team?

63% of respondents in Flexera's 2026 State of the Cloud Report.

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