IT spending in the Middle East and North Africa is expected to reach US$169 billion in 2026, rising 8.9% from the previous year, according to Gartner.

Data center systems are projected to be the fastest-growing segment, with spending set to increase 37.3% in 2026, though this growth rate will be slower than in 2025.

Gartner attributes the surge in data center investment to demand for AI-enabled software and infrastructure, driven mainly by governments, hyperscalers, technology providers, and organizations developing AI models.

Software spending in the region is forecast to reach US$20.4 billion in 2026, up 13.9%, as more organizations adopt generative AI capabilities.

IT services will also see steady growth, with spending projected to rise 8.3% in 2026.

🔗 Source: Zawya

🧠 Food for thought

1️⃣ MENA’s AI infrastructure boom signals major economic diversification strategy

The region’s significant data center investments reflect a calculated shift from oil-dependent economies toward technology-driven growth.

PwC projects AI will contribute $320 billion to the Middle East economy by 2030, with the UAE expecting AI to account for nearly 14% of its GDP and Saudi Arabia anticipating $135.2 billion in AI-driven economic value1.

This represents an economic transformation, where countries are using oil revenues to build the digital infrastructure needed for post-oil prosperity.

The 37.3% growth in data center spending mentioned in the forecast supports this vision, as governments and hyperscalers race to establish the computing power necessary for AI applications.

Saudi Arabia’s $135.2 billion projected AI contribution highlights how seriously regional leaders view AI as an economic cornerstone rather than just a productivity tool.

2️⃣ Infrastructure investment vastly outpaces current AI market size, indicating long-term strategic planning

The scale of IT infrastructure spending reveals that MENA is building capacity far beyond current demand, positioning for future AI adoption.

While the regional AI market was worth just $500 million in 2020 and is projected to reach $8.4 billion by 20262, the $169 billion in total IT spending shows infrastructure investment is running decades ahead of immediate AI market needs.